The boards of directors of Jet Airways (India) and Jet Lite (India), the wholly owned subsidiary of Jet Airways, approved the merger of Jet Lite with Jet Airways.
"The existing equity shares held by Jet Lite (India) and its nominees in Jet Airways shall stand cancelled without any consideration," the airline said, adding that Jet Lite shall stand dissolved.
The merger will further strengthen Jet Airways' efforts in providing a consistent, single brand product and service offering across the network, leading to a stronger market presence.
Consequent to the merger, Jet Lite will become part of Jet Airways and operate as a separate division of Jet Airways. This will result in more focused operational efforts, realizing synergies in terms of compliance, governance, administration and costs.
Naresh Goyal, chairman, Jet Airways 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.''
Shares of the company declined Rs 4.35, or 1.34%, to settle at Rs 319.60. The total volume of shares traded was 502,909 at the BSE (Wednesday).