IndiGo CEO Dutta seeks to reassure staff
Shares slump on alleged promoter rift
IndiGo’s CEO Ronojoy Dutta on Thursday sought to reassure employees that the airline will continue to chart its growth strategy. This comes amid media reports of a rift between two of its founders.
“I want to assure you that the growth strategy of the airline remains unchanged and firmly in place, and the management is fully charged by the board to implement it,” Mr. Dutta wrote to the employees referring to “alleged disagreements” between Rahul Bhatia and Rakesh Gangwal, the two partners of IndiGo’s parent company, InterGlobe Aviation Limited.
The CEO added that the airline would continue to “focus on creating value for all our shareholders, our customers, our employees”.
Mr. Bhatia has engaged Khaitan & Co and Mr. Gangwal J. Sagar Associates (JSA) reportedly to resolve their differences.
A top airline source sought to downplay the media reports and said that JSA had been representing InterGlobe for many years and Khaitan & Co, too, had represented the airline for certain transactions as well as Mr. Gangwal’s interest.
While Mr. Gangwal owns about 37% share in InterGlobe Aviation, Mr. Bhatia holds about 38% in the company. The differences between the founders are reportedly over the expansion plan for the airline. InterGlobe Aviation shares tanked 8.82% to ₹1,466 on the BSE on Thursday.
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