 "Jet Airways gains on board nod for merger with Jet Lite")
Shares of Jet Airways were up over 2% at Rs 326 after the airline's board at its meeting on Wednesday approved a scheme of merger of its loss-making wholly-owned subsidiary Jet Lite (India) Ltd.
It may be recalled that in 2007 Jet Airways had acquired Air Sahara. Following the acquisition Air Sahara was renamed as Jet Lite (India) and at present there are eight Boeing 737s in its fleet. (CLICK HERE FOR THE FULL REPORT)
JetLite has been a loss making subsidiary as result of which Jet Airways had to write-off its entire Rs 1,800 crore equity investment in the subsidiary. Post the merger there would be no need of further write-offs and improve profitability going forward. Jet Airways expects to register profits in 2017.
The share opened at Rs 324 and touched a high of Rs 332. At 10:40AM, over 725,000 shares were traded on both the stock exchanges.
It may be recalled that in 2007 Jet Airways had acquired Air Sahara. Following the acquisition Air Sahara was renamed as Jet Lite (India) and at present there are eight Boeing 737s in its fleet. (CLICK HERE FOR THE FULL REPORT)
JetLite has been a loss making subsidiary as result of which Jet Airways had to write-off its entire Rs 1,800 crore equity investment in the subsidiary. Post the merger there would be no need of further write-offs and improve profitability going forward. Jet Airways expects to register profits in 2017.
The share opened at Rs 324 and touched a high of Rs 332. At 10:40AM, over 725,000 shares were traded on both the stock exchanges.