JetBlue Airways Corporation and Deutsche Lufthansa announced on Friday an agreement for Lufthansa to make a minority equity investment in JetBlue. This transaction represents the first significant investment by a European air carrier in a US point-to-point air carrier.

Under the terms of the agreement, which has been approved by the Boards of both companies, Lufthansa will purchase in a private placement approximately 42 million newly issued common shares of JetBlue, or 19 per cent of JetBlue’s equity after giving effect to the issuance. Lufthansa is acquiring the shares at a price of $7.27 per share, or a total of approximately $300 million, rep-resenting a 16 per cent premium to yesterday’s closing price of $6.25.The agreement provides that a Lufthansa nominee will be appointed to the Board of Directors upon the closing of the transac-tion. The Lufthansa nominee will be a Class II director and will be up for election at JetBlue’s annual meeting in 2008.

Both airlines also look forward to exploring potential opportunities for further cooperation for the benefit of their customers. No specific areas of potential cooperation have been agreed.

JetBlue shareholder approval is not required in connection with the transaction, which is sub-ject to regulatory review and approval, and is expected to close in the first quarter of 2008.

New York-based JetBlue Airways has created a new airline category based on value, service and style.

Known for its award-winning service and free TV as much as its low fares, JetBlue is now pleased to offer customers the most legroom throughout coach (based on average fleet-wide seat pitch for US airlines) and is the first US domestic carrier to trial complimentary in-flight e-mail and instant messaging services using an onboard wireless network. JetBlue is also America’s first and only airline to offer its own Customer Bill of Rights, with meaningful and specific compensation for customers inconvenienced by service disruptions within JetBlue’s control.

JetBlue serves 53 cities with up to 550 daily flights.

With JetBlue, all seats are assigned, all travel is ticket- less, all fares are one-way, and an overnight stay is never required.