Mumbai, Sept. 2: JetLite, the subsidiary of Jet Airways (India) Ltd, is to be merged with its parent airline.

The decision was taken at the board meetings of both these entities held today. The merger is subject to regulatory and other approvals.

Jet Airways, the country's second-largest airline in terms of the number of passengers carried, had bought Sahara Airlines in April 2007 for Rs 1,450 crore after an arbitration award. It later renamed the airline as JetLite and operated the carrier as a low-cost arm till November last year.

Jet Airways and JetLite now operate under two different flying licences, which will be retained despite the merger.

"Jet Airways has made demonstrable progress in the implementation of its three-year turnaround strategy with the objective of returning to profitability. The merger of JetLite into Jet Airways is a key step to strengthen Jet Airways' operations and create a seamless organisation, delivering exceptional service to its guests," Jet Airways chairman Naresh Goyal said.

After the merger, JetLite will become a part of Jet Airways and operate as a separate division of Jet Airways.

The move follows Jet Airway's decision to streamline and align its domestic operations and create a uniform Jet Airways master brand.

Jet Airways' consolidated net profit for the first quarter stood at Rs 226.4 crore, helped by higher revenues and an increase in passenger traffic. It had posted a loss of Rs 258 crore a year ago. JetLite's first-quarter net profit was Rs 4.7 crore against a loss of Rs 40.4 crore a year ago. However, total revenue of the subsidiary fell nearly 10 per cent to Rs 323 crore during the period.

Jet Airways' scrip today closed at Rs 319.60, down 1.34 per cent on the BSE.

PM concern over airfare

Prime Minister Narendra Modi has expressed concern over a steep rise in airfares during festive seasons, following which the civil aviation ministry is looking at ways to curb such instances.

There are instances of airlines hiking the price of air tickets during festivals when more people travel. "High airfares (during festivals) is a cause for concern. We will try to address the problem both in international and domestic routes," a senior ministry official said.