Jet Airways on Wednesday said the government has not given approval for the merger of its subsidiary Jet Lite with itself, nearly three years after the proposal was announced by the full service carrier.
The merger proposal was approved by the board of Jet Airways in September 2015 and was later cleared by the airline's shareholders in April 2016.
The specific reasons for the rejection of approval for the merger could not be immediately ascertained.
Sahara Airlines was renamed as Jet Lite.
A Jet Airways spokesperson said it respects the decision of the ministry on the proposed scheme of merger.
The merger would lead to greater efficiency in cash management of the merged entity and "unfettered access to cash flow generated by the combined business which can be deployed more efficiently to maximise shareholder value", the airline had said in April 2016.
Shares of Jet Airways declined 2.36 per cent to close at Rs 499.80 apiece on the BSE.