NEW DELHI -- Over a year after Jet Airways chairman Naresh Goyal decided that the airline will be a full service carrier operating under a single brand, it has now cleared the merger of Jet Airways and JetLite. Jet Airways had bought Air Sahara in 2007 and branded it as JetLite/Jet Konnect, a low-cost carrier.
The airline said in a BSE filing that the merger is from April 1, 2015. "The existing equity shares held by JetLite (India) and its nominees in Jet Airways shall stand cancelled without any consideration," the filing said, adding that JetLite will stand dissolved.
Following the merger, JetLite will become a part of Jet Airways and operate as a separate division. "This will result in more focused operational efforts, realizing synergies in terms of compliance, governance, administration and costs," the airline said in a statement.
Goyal said: "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 Jet Lite into Jet Airways is a key step to strengthen Jet Airways' operations and create a seamless organization, delivering exceptional service to its guests."
Last August, Goyal had disbanded JetLite and switched to a single full service brand of Jet. This decision was conveyed on August 11, 2014, just hours after Tata Sons and Singapore Airlines announced that their full service JV Vistara.
While Air Sahara-turned-JetLite is now history, Jet will retain its air operating permit or airline licence. The Jet and Sahara groups had a bitter disagreement over the price at which the former had acquired Air Sahara. The initial price for Air Sahara was Rs 2,000 crore, but the two companies eventually settled at Rs 1,450 crore.