The CEO of IndiGo signals a truce among the founders
NEW DELHI: I'm glad the disagreements have been resolved and we can all rule out shallow breathing caused by anxiety and take deep breaths of yoga while restoring our peace of mind. The CEO of IndiGo, Ronojoy Dutta, announced this long-awaited news to anxious employees on Monday morning, indicating that promoters Rahul Bhatia and Rakesh Gangwal finally declared a truce in their war of words.
I need to inform you about two developments within the company, both in the category of good news. We had a good annual general meeting on August 27, followed by a very constructive meeting of the board on August 30. As you know, there were a couple of controversial issues between our two promoters, which needed to be addressed. The first related to the issue of transactions with related parties (RPT) and the second related to the size and composition of the new board when we induce some independent directors, Duttatold employees in an email
I am pleased to tell you that both issues have been satisfactorily resolved. We have made some procedural changes in our existing RPT policy and the revised policy has been unanimously approved by the board. In addition, the board will be extended to 10 members and four of the directors will be independent. These differences between the promoters, of course, never really affected the company's operations, but it is always pleasant when the different branches of the family make peace with each other, he added.
The two promoters, Rahul Bhatia with his family controlled by InterGlobe Enterprises (IGE) and Gangwal, have had great disagreement on the issue of IndiGo entering RPT with the companies of the IGE Group.
The other point of contention with Gangwal was the level of control of Bhatia and IGE in IndiGo. Both Gangwal and Bhatia have approximately 38% participation in IndiGo.
The truce signals were given by Gangwal on August 23 when he signaled approval of the changes proposed by the airline.
The board has approved a new RPT policy and also close an open topic if the bylaws are amended in the next AGM on August 27 to increase the board's size to 10 directors. In light of this positive and important development, I will support the proposed changes to the articles, Gangwal had said.
With the differences set aside, Rono said the airline's expansion to international markets continues at a dizzying pace.
By October of this year we would have added 41 new international flights year after year, our international growth rate would be 109% and the international one will represent 25% of our total system. ... We should think of our home lawn as an irregular circle, which extends from Delhi to Istanbul to Singapore to Hong Kong to Chengdu and back to Delhi. There is a lot of empty space within that circle and we must fill that space in IndiGo colors with hasty impatience.
Therefore, the emotional impediment has been eliminated and the expansive growth towards new horizons continues at great speed. Safety comes first, and please provide our customers with a trouble-free service, both on the air and on the ground, Rono's mail said.