Jet gets shareholders' nod to sell frequent flyer business for Rs 695 crore

Jet Airways has received shareholders' approval to sell its frequent flyer programme business to subsidiary Jet Privilege Private Ltd (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 JPPL "as a going concern on a slump sale basis".

"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 said in a filing to the BSE.

Jet Airways had reported a net loss of Rs 267.89 crore for the quarter ended December 31, 2013.

The airline, which recently completed the sale of 24 per cent stake in it to Abu Dhabi-based Etihad Airways, had registered a net profit of Rs 85 crore in the corresponding quarter in 2012.

Jet and JPPL had entered into a 'slump sale agreement' and a '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.

Shares in Jet, on Thursday, ended at Rs 224.20 apiece on the BSE, down 2.07 per cent from the previous close.