US News

IT’S THE NEW RED BARON

German airline Deutsche Lufthansa swooped in to give JetBlue a much-needed boost by acquiring a 19 percent stake in the discount carrier for $300 million.

JetBlue’s shares, which haven fallen nearly 50 percent this year amid concerns about rising costs and the company’s rapid growth, soared 14 percent on the news.

The $7.27-a-share deal, announced yesterday afternoon, represents a 16 percent premium to where JetBlue’s shares were trading Wednesday, before the plan was unveiled.

After a strong lift-off when it debuted in 2000, JetBlue has hit some major turbulence over the past couple of years, brought on in part by the company’s rapid expansion and skyrocketing oil prices.

The Queens-based company is still struggling to bounce back from a public relations fiasco that ensued after a February ice storm left passengers stranded on runways for hours.

JetBlue has since overhauled its top management, including ousting its CEO, David Neeleman, the company’s high-profile founder.

Lufthansa’s cash infusion will give JetBlue “greater financial flexibility as we move into 2008,” JetBlue’s new chief Dave Barger said.

With the deal, Lufthansa was able to take advantage of the euro’s surging value against the greenback. Its stake comes just under the 20 percent federal limit on foreign ownership of a domestic airline.

“Our investment reflects the confidence we have in JetBlue’s quality, growth potential and management team,” said Lufthansa Chairman Wolfgang Mayrhuber.

The companies said the deal also opens the door to further cooperation between the airlines aimed at benefiting customers.

In a late-afternoon conference call to discuss the deal, Barger said the transaction was purely financial.

He added that the airlines haven’t discussed code-sharing agreements, which would enable passengers to book tickets and move seamlessly from one airline to another.

In Nasdaq Stock Market composite trading yesterday, JetBlue’s stock price gained 90 cents to $7.15 a share.janet.whitman@nypost.com