New Delhi: The Central government has “not approved” the merger plan between Jet Airways and its subsidiary Jet Lite, the company said on Wednesday.
“The Ministry of Civil Aviation has not approved the scheme of merger of Jet Lite (India) Ltd. with the company, the same stands revoked, cancelled…,” the company said in a BSE filing.
Accordingly, the company said that Jet Lite and Jet Airways shall continue with their respective operations as “two separate legal entities with their respective air operator certificates”.
“Jet Airways respects the decision of the Ministry of Civil Aviation (MoCA) on the proposed scheme of merger,” a Jet Airways spokesperson said.
In a BSE filing, the airline said the civil aviation ministry has not approved the merger of Jet Lite Ltd with itself. Consequently, the merger scheme stands revoked and cancelled, it added.
The specific reasons for the rejection of approval for the merger could not be immediately ascertained.
Sahara Airlines was renamed as Jet Lite. A Jet Airways spokesperson said it respects the decision of the ministry on the proposed scheme of merger.
In April 2007, Jet Airways had acquired Sahara Airlines for Rs 1,450 crore after an arbitration award and the latter was renamed as JetLite.
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”, the airline had said in April 2016.