IndiGo's co-founder not intent on taking control of company - CEO

One of the co-founders of India`s largest airline IndiGo has no plans of taking control of the carrier, its Chief Executive said on Saturday

IndiGo's co-founder not intent on taking control of company - CEO
IndiGo co-founders Rahul Bhatia and Rakesh Gangwal, along with their respective families, each control stakes of slightly less than 40 percent in the airline`s holding company. Image source: Reuters
By Reuters
Updated: Sun, May 19, 2019
08:30 am
Reuters
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One of the co-founders of India`s largest airline IndiGo has no plans of taking control of the carrier, its Chief Executive said on Saturday, two days after parent InterGlobe Aviation Ltd shares fell over a media report about alleged differences between the co-founders. InterGlobe`s shares fell 9 percent on Thursday after India`s most read business newspaper Economic Times reported that the co-founders and two largest shareholders were at odds over its expansion. The shares were up slightly on Friday.

Co-founders Rahul Bhatia and Rakesh Gangwal, along with their respective families, each control stakes of slightly less than 40 percent in the airline`s holding company, giving them both a major say in its strategy and plans.

"I am authorized by Mr. Rakesh Gangwal to make the following statement on his behalf - `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`," Ronojoy Dutta, Chief Executive of IndiGo said in a statement.

IndiGo, SpiceJet and GoAir have been rushing to fill the vacuum left by the collapse of Jet Airways, once India`s largest carrier, and gain control of its valuable slots. IndiGo, launched in 2006, has a nearly 47% market share in India. The airline has a fleet of 225 aircraft and flies to more than 70 destinations globally.