IndiGo Chief Executive Officer Ronojoy Dutta on Wednesday assured the company’s staff about the airline’s viability, a day after a public altercation between the company’s promoters, PTI reported.
In a letter, Dutta said problems between the promoters had nothing to do with the company and its operations. “The issues between them will eventually get sorted out,” Dutta added. “As much it is very important that we all remain focused on running high-performance airline.”
The executive said nothing had “changed for any of us” and added that he would continue doing his job. Dutta asked the others to also do the same. He also thanked the airline’s employees for “delivering our promise of on-time, courteous and hassle-free experience”.
Earlier in the day, the shares of InterGlobe Aviation Limited, which runs IndiGo, fell 19% after market regulator Securities and Exchange Board of India sought a response from the company on the allegations made by the two promoters against each other. The regulatory body intervened after the company’s promoter Rakesh Gangwal, in a letter dated July 8, alleged that there were severe governance flaws in the way IndiGo’s co-founder Rahul Bhatia ran things.
“The hard work of the employees of IndiGo has paid off,” Gangwal wrote. “Now, IndiGo is one of the most successful aviation companies in the world and not just in India. However, today, IndiGo is at a watershed moment. It has started veering off from the core principles and values of governance that made IndiGo what it is today.”
He added that even a “paan ki dukaan” would have been able to handle matters better. Gangwal raised concerns about Bhatia’s “unusual controlling rights over IndiGo” in view of related party transactions.