Jet Airways has sought approval of shareholders to sell the frequent flyer programme business to its subsidiary JPPL for Rs 695.21 crore.
The company sought approval of shareholders to transfer, sell or dispose of the Jet Privilege frequent flyer programme to its subsidiary Jet Privilege Private Ltd "as a going concern on a slump sale basis".
Separately, Fair trade watchdog Competition Commission of India had last week approved Etihad's 50.1 per cent stake purchase in JPPL.
Under such loyalty programmes, airlines offer certain benefits to their "frequent-flyer" customers.
"...The Board of Directors to make investments in, acquire by way of subscription, purchase or otherwise the share capital of JPPL for a consideration of Rs 6,952,106,616 by acquiring equity shares of JPPL (representing up to 49.9 per cent of the share capital of JPPL on a fully diluted basis) by way of a new issuance in one or more tranches," a Jet Airways postal ballot notice said.
The last date for receiving postal ballots from shareholders is March 14 and the results will be announced by March 22.
Jet Airways last week reported a net loss of Rs 267.89 crore for the three months ended December 2013.
The airline, which recently completed the 24 per cent stake sale to Abu Dhabi-based Etihad Airways, had registered a net profit of Rs 85 crore in the year-ago period.
Jet and JPPL had entered into a 'Slump Sale Agreement' and 'Commercial Agreement' on November 19, 2013, for the purpose of hiving-off the airline's loyalty business into JPPL and to establish a commercial relationship between them.
Jet scrip closed at Rs 220.60, down 1.76 per cent, on the BSE.
