Leading carrier Jet Airways will seek the approval of shareholders and creditors on April 22 for the proposed merger of JetLite with itself
New Delhi: Leading carrier Jet Airways will seek the approval of shareholders and creditors on April 22 for the proposed merger of JetLite with itself.
Jet Airways' board had approved the merger of the low-cost subsidiary JetLite with the airline in September.
According to a regulatory filing today, Jet Airways said it will seek the nod of "equity shareholders, secured creditors and unsecured creditors" for the proposed merger on April 22.
The meet is being convened following an order from Bombay High Court on March 18 asking the airline to convene a meeting of equity shareholders on April 22 to consider the proposed merger.
In this regard, Jet Airways had sought directions from the high court.
According to Jet Airways, the merger would lead to greater efficiency in cash management of the merged entity and "unfettered access to cash flow generated by the combined business which can be deployed more efficiently to maximise shareholder value".
"Jet Airways has made demonstrable progress in the implementation of its three-year turnaround strategy with the objective of returning to profitability.
"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 had said in September last.
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.
Currently, Jet Airways and JetLite operate under two different Air Operator Permit (AOP).