Jet Airways-Jet Lite merger denied approval

India's top private airline operator Jet Airways was denied approval from the Aviation Ministry to merger with its wholly-owned subsidiary Jet Lite.

In 2007, Jet Airways acquired low-budget airline Air Sahara and later rebranded it as Jet Lite. Through the merger, Jet Airways hoped to increase cash flow efficiency and reduce debt. The merger was approved by the shareholders of Jet Airways in 2016. Post this development, the two airlines will continue to operate as separate entities under separate Air Operator Permit (AOP).

Beside, in the international market, crude oil was trading at around US$77 per barrel, which negatively impacts the aviation industry. Aviation stocks seemed to be under pressure during Thursday's trading session and closed in the red territory.

The stock of Jet Airways closed at Rs. 484.20 per share, down by 3.12 per cent, Spicejet Limited was at Rs. 119.40 per share, down by 1.65 per cent, InterGlobe Aviation Rs. 1,143.40 per share, down 2.23 per cent, when the benchmark index BSE Sensex was at 35,246.27, down 73.08 point or 0.21 per cent.