InterGlobe Aviation Chief Executive Officer Ronojoy Dutta dispelled speculation about disagreements between the promoters of IndiGo, PTI reported on Thursday. In a letter to the low-cost domestic airline’s employees, Dutta said that the management has the complete support of the company’s board of directors.
The CEO said IndiGo’s growth strategy remained unchanged. Dutta’s statement follows reports about a spat between IndiGo promoters Rahul Bhatia and Rakesh Gangwal. “I am sure you are all aware of the press reports regarding alleged disagreements between our two promoters Mr Rahul Bhatia and Mr Rakesh Gangwal,” Dutta said. “I want to assure you that the growth strategy of the airline remains unchanged and firmly in place, and the management is fully charged by the Board to implement it.”
Media reports had said that Bhatia and Gangwal had hired legal firms to help them resolve a dispute about how to expand the firm’s presence in the international market, The Times of India reported. Gangwal is reported to own 37% of the company’s stake and Bhatia 38%.
Meanwhile, IndiGo shares dropped by 8.98% to trade at Rs 1,464 at 3.06 pm. The airline holds a 44% share in the domestic passenger market.