New Delhi, March 24: Jet Airways today announced it would pay an advance of Rs 500 crore to the Sahara group. The company also said it would turn Sahara Airlines into its 100 per cent subsidiary.

In a statement, Jet said: ?The enterprise value of the transaction remains unchanged at around $500 million ... the two parties have also agreed that Jet Airways will pay Rs 500 crore out of the agreed consideration to the shareholders of Sahara Airlines Ltd, against the pledge of 100 per cent of Sahara Airline Ltd?s shares.?

Sahara group sources said the airlines would now approach the regulatory authority to secure approvals for the deal. Yesterday, Sahara chief Subrato Roy and Jet chairman Naresh Goyal had a meeting where it was decided to extend by 90 days the term of the share purchase agreement.

Goyal today told reporters in Mumbai, ?Air Sahara will be a 100 per cent subsidiary of Jet so that we can enjoy all the infrastructural facilities presently with it, as we need approval from the high court for the merger. Till that time Air Sahara will be our subsidiary.? (Sahara Airlines operates its flights under the Air Sahara brand name.)

The Jet chief also said, ?We believe in the deal and we believe it is good for Jet Airways.? He said the airlines hope to get the regulatory approval in 60 days, much ahead of the 90-day deadline stipulated in the share purchase agreement.