Air Transport World

Lufthansa's bet on JFK.(EDITORIAL)(Deutsche Lufthansa AG)(Editorial)

We're pretty sure that Lufthansa Chairman Wolfgang Mayrhuber did not pick up the phone and call Warren Buffett for advice before he decided to invest in JetBlue Airways. If he had, the billionaire investor probably would have told him a thing or two about his own foray into the US airline business, which ended with Buffett suggesting that everyone might have been better off if Wilbur had shot Orville.

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But then, we'll guess that Lufthansa did not plunk down $300 million for 19% of JetBlue and a seat on the low-fare airline's board of directors because it's looking for a superior ROI or dividend yield that it can't get elsewhere. With all due respect to JetBlue (a fine airline that has hit some turbulence), there's only one US carrier that has demonstrated long-term equity appreciation and a reliable dividend stream and it is based in Dallas, not Queens. …

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