Jet Airways on Wednesday said its board has approved merger of the low-cost subsidiary JetLite with the parent airline. (Reuters)
Jet Airways shares gained in morning trade on Thursday after the Naresh Goyal-promoted airline said its board has approved merger of the low-cost subsidiary JetLite with the parent airline.
At 10.51 am, Jet Airways shares were trading 1.53 per cent up at Rs 324.50. On NSE, the shares were up 2.39 per cent at Rs 325.00 . Sensex was trading 228.69 points up at 25,682.25 during the same time.
“The merger of JetLite into Jet Airways is a key step to strengthen Jet Airways’ operations and create a seamless organisation, delivering exceptional service to its guests,” Jet Airways chairman Naresh Goyal said.
Consequent to the merger, JetLite will become part of Jet Airways and operate as a separate division of Jet Airways, the airline said adding this will result in a more focused operational efforts, realising synergies in terms of compliance, governance, administration and costs.
Jet Airways had bought Sahara Airlines in April, 2007, for Rs 1,450 crore after an arbitration award. It later renamed Sahara Airlines as JetLite and operated it as a low-cost arm till November last year.
At present Jet Airways and JetLite operate under two different Air Operator Permit (AOP).
The merger approval by the board is subject to compliance with all applicable laws and regulations and the receipt of all corporate, regulatory, governmental, judicial approvals and third party consents, Jet Airways said.
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