Thanks to the open skies agreement that flattened ownership and control rights between airlines in the EU and US, Lufthansa took the invitation and bought a 19% stake of JetBlue for $300 million. Idea behind the upgrade is to boost their low carrier share and grow the Star Alliance. And it supports the Forest Hills, N.Y based airline’s challenges with rising fuel prices.

Lufthansa not only is profitable but is highly diversified, with global maintenance and cargo operations, inflight catering and airline information-technology services. It is no stranger to airline acquisitions. Two years ago, it bought ailing Swiss International Air Lines, which it has largely merged with its own operations. Lufthansa also owns almost 30% of closely held British Midland Airways Ltd.

Competition for Germany’s biggest airline actually comes from Emirates. They have cheap desert airports that serve as Asian hubs, cheap oil and more leg room in economy. Once Berlin’s new airport gets done in 2011, the East will get a new hub in Europe.