New Delhi: Naresh Goyal-promoted private carrier Jet Airways is likely to soon move the Bombay High Court to seek approval for convening shareholders meet on the merger of its subsidiary JetLite with the parent company. Market regulator Sebi has already approved the merger of JetLite into Jet Airways late last year, airline sources said today.
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 2014.
The merger is expected to be completed this fiscal. “Sebi (Security Exchange Board of India) has given its go ahead to the merger late last year. We are now contemplating to approach the Bombay High Court, asking it to allow us convene shareholders meet and take their approval to the merger,” sources said on condition of anonymity.
Jet Airways is likely to move the court in this regard next week, they said. Jet Airways spokesperson was not available for comments. The Jet Airways board had in September last year approved a proposal to make JetLite a business division of the parent company for better synergy and efficiency in operations besides cost savings by way of merger.
At the beginning of 2014-15, Jet Airways had announced a three-year turnaround plan to return to profitability. The plan included various standalone measures and synergies with its strategic investment partner, Etihad Airways. At present Jet Airways and JetLite operate under two different Air Operator Permit (AOP).
Jet Airways has currently 98 aircraft in its fleet while JetLite has eight, according to the DGCA data. In November, the combined market share of Jet Airways and JetLite stood at 21.3 per cent, the second largest after low-cost carrier IndiGo, which corned 35.5 per cent during the month.
The Mumbai-based airline, in which Etihad holds 24 per cent stake, has reported profit for the two consecutive quarters (April-June and July-September) this fiscal. Jet Airways had posted a consolidated net profit of Rs 83
crore in second quarter of the current fiscal against a net loss of Rs 42.8 crore a year-ago period.