But there’s no information at this stage on the future of other current key executives in the two groups.

The ceo of the merged operation and current Stella boss, Peter Lacaze, wasn’t immediately available for comment.

Today’s announcement says the merger will be implemented through Stella shareholders being issued with 219,553,000 Jetset ordinary shares, giving them 50% of the expanded capital of the merged entity.

Based on the last closing price, Jetset will have a pro-forma market capitalisation of $439.2m.

Current shareholders, funds advised by CVC Asia Pacfic and UBS, will hold just under 26.9% and 17.9% respectively of the expanded Jetset shares on issue and Qantas and interests associated with Spiros Alysandratos will hold 29% and 12.6% respectively.

Jetset will remain listed on the ASX.

Peter Lacaze had this to say this afternoon in an open letter to the industry:

"This is good news for Stella and is another positive step in the company’s progress, building on the substantial improvements achieved over the past 18 months.

"I look forward to being CEO of the merged entity and will have Elizabeth Gaines (currently Stella Group CFO) working with me as CFO.

"We are both focused on the challenge of bringing the Stella and Jetset businesses together in a smooth and seamless manner.

"It is our intention to operate the merged company in the best interests of all franchisees and members, staff, key suppliers, business partners and shareholders.

"I would like to take this opportunity to acknowledge the contributions of Peter Collins and his senior management team. They have done a good job during their stewardship of Jetset and I am confident of a smooth and successful transition.

"In the period between this announcement and completion (end August), it is important that we all stay focused on running the existing business operations well. This will ensure a smooth transition to the new merged entity.

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