IndiGo CEO assures employees as promoters feud deepens: 10 things to know1 min read . Updated: 10 Jul 2019, 03:37 PM IST
- Absolutely nothing has really changed for any of us: IndiGo's CEO to employees
- Rakesh Gangwal, one of the promoters of IndiGo, on Tuesday alleged serious governance lapses at the parent group
A day after a spat between the promoters of IndiGo, the country's largest carrier became public, the CEO of the airline has in a letter to employees said that issues between the promoters have nothing to do with IndiGo and its functioning. CEO Ronjoy Dutta expressed hope that the issues between the promoters will get sorted out and asked the employees to continue their work as usual. "The issues between them will eventually get sorted out but I want to stress that these issues have nothing to do with the airline and its functioning," Dutta said.
In his letter to employees, IndiGo’s CEO said the airline's mission, direction and growth strategy remains unchanged, and firmly in place. "As much it is very important that we all remain focused on running high performance airline," he said in the letter.
"Absolutely nothing has really changed for any of us, I will just go about doing my job to the best of my abilities, and I know I can count on you to do the same,” he said.
IndiGo’s shares fell as much as 19% today after the promoter feud became public.
Rakesh Gangwal, one of the promoters of IndiGo, on Tuesday alleged serious governance lapses at the parent group, InterGlobe Aviation, by its co-founder Rahul Bhatia.
Gangwal sought markets regulator Sebi's intervention to address the problems. The regulator has asked, InterGlobe Aviation, to respond to its queries by July 19.
Alleging that the company has "started veering off" from the core principles and values of governance, Gangwal said that even a "paan ki dukaan" would have managed matters with more grace.
Bhatia’s holding company is the top shareholder, with a stake of 38% as of March 31. Gangwal and his family held 37%.
The complaints centered on what Gangwal described as “unusual controlling rights” held by Bhatia.
That level of power paved the way for Bhatia to push through related-party transactions and major decisions without proper safeguards or protocols, alleged Gangwal.
Gangwal, once the chief executive officer at US Airways, teamed up with Bhatia to create IndiGo in 2005. The carrier quickly outpaced rivals to grab almost half of the local market, making both founders billionaires.
IndiGo, Asia's most valuable budget airline by market capitalisation, has also accelerated international expansion plans since Jet's collapse in April. (With Agency Inputs)