Paving the way for the formal merger between Jet Airways (India) Ltd and its wholly owned subsidiary Jet Lite (India) Ltd, the equity shareholders of Jet Airways (India) have approved the amalgamation of both airlines.
The approval came at a court convened meeting of the shareholders which was held on Friday, Jet Airways informed the stock exchanges on Saturday.
The board of directors of Jet Airways (India) and Jet Lite (India) had in September 2015 approved a proposal for the merger of the two airlines for better operational efficiency. The boards had set the appointed date of merger as April 2015.
Post merger the existing equity shares of Jet Airways and its nominees in Jet Lite will stand cancelled without any financial consideration and Jet Lite will stand dissolved without winding up.
The flying permit of Jet Lite will be retained and it will be operated as a separate division of Jet Airways.
Since nearly two years, both the airlines have been working in close coordination in route planning and cross selling for better operational efficiency.
In 2014, months after Etihad Airways acquired 24 per cent stake in Jet Airways (India) and integrated the operations of the Indian carrier with itself for channelizing traffic to its hub in Abu Dhabi, Jet Airways and Jet Lite turned full service and the Jet Lite’s operations were integrated with Jet Airways to provide the same level of service to passengers under a single brand strategy.
Jet Lite, formerly, Air Sahara, was acquired by Jet Airways from Sahara Group in 2007 for Rs 1450 crore following a legal battle between the promoters of the erstwhile rival carriers. Air Sahara, a full service airline was rebranded JetLite to offer low fares.
