Jet Airways receives shareholders' nod to sell frequent flyer biz

Mar 20 2014, 20:10 IST
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Jet Airways had reported net loss of Rs 267.89 crore for the three month period ended December 31, 2013. Reuters Jet Airways had reported net loss of Rs 267.89 crore for the three month period ended December 31, 2013. Reuters
SummaryJet Airways has received approval of shareholders to sell the frequent flyer programme business to its subsidiary JPPL for Rs 695.21 crore.

Jet Airways has received approval of shareholders to sell the frequent flyer programme business to its subsidiary JPPL for Rs 695.21 crore.

The company had 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".

In a filing to the BSE, it said: "Thus, the Special Resolutions as set out in the Postal Ballot Notice dated February 7, 2014 have been approved by the Members of the Company with the requisite majority."

Jet Airways had reported net loss of Rs 267.89 crore for the three month period ended December 31, 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 October-December quarter in period 2012.

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 224.20, down 2.07 per cent, on the BSE.

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