The Indian government has blocked the proposed merger of Jet Airways (9W, Mumbai Int’l) with its regional subsidiary JetLite (S2, Delhi Int’l) three years after the group’s board has announced such a move, the carrier has said in a filing to the Bombay Stock Exchange.
The merger was formally approved by Jet Airways’ shareholders in September 2016 but has now been formally revoked.
“In view of the above, Jet Lite (India) Ltd. and Jet Airways (India) Ltd. shall continue their respective operations as two separate legal entities with their respective Air Operator Certificates,” Vice President Global Compliance & Company Secretary Kuldeep Sharma has stated in the filing.
The reasons for the government’s decision are not currently known.
JetLite has been a subsidiary of Jet Airways since 2007 when the carrier acquired the airline previously known as Air Sahara for INR14.5 billion rupees (USD215 million). According to the ch-aviation capacity module, the carrier currently operates 316 own flights per week, mostly out of Mumbai Int’l, using a fleet of two B737-700s and five B737-800s. JetLite also operates a number of services on behalf of its parent, mostly out of Mumbai, Delhi Int’l, Hyderabad Int’l, and Pune.