NEW DELHI: Jet Airways on Friday paid Rs. 400 crore to acquire all shares of Sahara Airlines Ltd and close the Rs. 1,450-crore takeover deal.

Thus the Lucknow-based airline has become Jet's wholly owned subsidiary, `JetLite'.

Quits post

Soon after the payment, Sahara Airlines president Alok Sharma said he had quit the post but would be available for effecting a smooth transition and continue to work with the parent group, Sahara India Parivar.

Senior Jet Airways officials led by chief commercial officer Garry Kingshott went to the Sahara Airlines headquarters here to give effect to the amalgamation process.

Jetlite chief

Mr. Kingshott, who held talks with Mr. Sharma, is tipped to head JetLite once it is formally established with Mumbai as headquarters.

"It is the intention of Jet Airways to operate Sahara Airlines as a separate entity whilst improving the operational and financial performance of the business by leveraging the size of Jet Airways," a Jet Airways statement said.

Jet informed the Bombay Stock Exchange that as part of the agreement concluded last week, it effected closure of the January 2006 share purchase agreement between it and the selling shareholders of Sahara.

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