NEW DELHI: Even as co-founders of India’s largest carrier IndiGo — Rakesh Gangwal and Rahul Bhatia — lock horns over managerial control of the airline, its CEO Ronojoy Dutta has said that the carrier’s growth strategy remains unchanged.
In a letter to employees, Dutta, who is considered close to Gangwal, said, “I am sure you are all aware of the press reports regarding alleged disagreements between our two promoters, I want to assure you that the growth strategy remains unchanged and firmly in place, and the management is fully charged by the Board to implement it.”
The two partners have reportedly disagreed over future plans for the airline. While Gangwal preferred a fast approach by scaling up fleet size, Bhatia is said to have been in favour of consolidation before large scale expansion. IndiGo’s recent financial performance and its failure to emerge as the largest beneficiary of the slot allotment exercise that took place after the grounding of Jet Airways is also said to have created tension between the two.
Differences between the two promoters also arose when the airline’s former CEO Aditya Ghosh exited the airline in April last year and many expatriates, mainly from United Airlines where Gangwal held key positions, were brought in to manage affairs at IndiGo. At present, Dutta who is the CEO and Rohit Philip, the chief financial officer of IndiGo are former United executives holding top management positions at the airline.
In order to resolve their differences, Gangwal and Bhatia are reportedly taking help from law firms J Sagar Associates and Khatian & Co, respectively.
As of March 31, Bhatia held 38 per cent stake in the parent company Interglobe Aviation while Gangwal held a 37 per cent share. The duo had founded the budget carrier in 2006.
The airline has also entered into code-sharing agreements with a foreign airline and is expanding its overseas footprint. It is reported that Gangwal and Bhatia also differ on the way the airline is pursuing its global ambitions, with Bhatia preferring acquiring wide-body aircraft for long haul destinations while Gangwal leans toward codesharing pacts with other airlines.