New Delhi: India's largest airline IndiGo said on Saturday that a little bit of turbulance while shifting gears from one phase of growth to the next is non un-natural for successful firms and that the current differences between major shareholders will be resolved soon.
IndiGo chief executive Ronojoy Dutta said in a statement that the company has great experience in resolving issues and assured on behalf of Rakesh Gangwal (RG), one of the promoters, that he has no interest in taking control of IndiGo.
"We all know, that in any strong and well-managed company there will always be differences. And, yes, there may be differences currently on certain matters but the company has a great track record of resolving issues and coming out ahead. If the current differences were to not get resolved, you shall certainly hear about it; however, it serves no purpose speculating about it," said Dutta.
Dutta's comments come in the wake of news reports that the major shareholders of IndiGo Rahul Bhatia and Rakesh Gangwal, who along with other promoter entities, hold about 75% in InterGlobe Aviation Ltd., the listed company that runs the airline have hired law firms to resolve their differences. Dutta explained that the law firms have been with the two promoters since 2015 on various ongoing matters and should not be seen as a new development. Dutta also said quoting Gangwal, a former United Airlines and US Airways executive, who holds about 37% stake in the company that the latter was not trying to take control over the airline.
“I am categorically and clearly stating that there is no interest or desire whatsoever on the part of the RG Group to take control of the company. Also, to put to rest the messaging on the fact that the RG Group is attempting to renegotiate the shareholders agreement, I am placing on record that the RG Group stands by the current agreement which, in any case, expires this October," Dutta said in the statement quoting Gangwal.
Dutta did not explain what the differences between major shareholders were but said such issues were natural in a successful company. "All great companies go through periods of transition as they evolve from one phase of their growth to another and a little bit of turbulence during these transition phases is neither unusual nor unwelcome. Most importantly, the promoters and the Board (of directors) have worked as a team in making these management changes," he said, referring to the management changes the company has seen in last one year. IndiGo chief executive officer Aditya Ghosh had quit last year after helming the airline for a decade since its inception.
IndiGo also sought to assure investors that its bold vision of growth stays in place. "We remain committed to our path of a rapid build-up of airline connectivity within India and to international destinations," the statement said.