In A Surprise Move, IndiGo Co-Founder Rahul Bhatia Appointed As The MD Of The Airline

At a time when the Indian aviation sector is going through a shakeup due to the Tata acquisition of Air India and the impending launch of Rakesh Jhunjhunwala-backed Akasa Air, another major player is also undergoing a major change.

IndiGo has appointed its co-founder and promoter Rahul Bhatia as the Managing Director of the airline.

BCCL

While the move is described as to focus on expanding the airlines' presence in India and international markets, it comes in the backdrop of the fight between the co-founder and promoters -- Rahul Bhatia and Rakesh Gangwal over a dispute on shareholders agreement.

Bhatia is the first MD of IndiGo as the airline did not have the post till now.

On Friday, the Board of Directors of InterGlobe Aviation unanimously approved Bhatia's appointment with immediate effect, "subject to the approval of the Members of the Company".

IndiGo

On his part, Bhatia stated that his agenda would be transformational and would focus on expanding the airline's presence in India and in international markets and building for the long term.

According to IndiGo's Chairman Meleveetil Damodaran, Bhatia would oversee all aspects of the airline, and actively lead the management team.

IndiGo's CEO Ronojoy Dutta said: "I would describe Rahul as a restless and driven entrepreneur, who is always looking for bigger and improved opportunities in any business or venture. For example, our initiative into Cargo, as well as the entire digitisation in the last couple of years were spearheaded by Rahul.

"We are now entering a new phase in our journey, with more international and long-haul flights. In this evolving and exciting environment, strengthening the thought leadership in the company is a timely and welcome move."

The two men who founded IndiGo in 2006 were involved in a bitter dispute over the company's shareholding pattern.

BCCL

The Gangwal Group has 36.6% stake in IndiGo while Bhatia Group, along with Bhatia family-controlled InterGlobe Enterprise (IGE) has about 38% stake in the airline.

Things took an ugly turn in mid-2019 after Gangwal approached SEBI over Bhatia Group¡¯s control over the airline.

Gangwal had sought changes to the shareholders¡¯ agreement, which was declined by Bhatia and the two sides had taken each other to court in India and abroad over the dispute.

Things were finally settled in December after other shareholders voted in favour of removing the restrictions, and thus allow Gangwal to sell his stakes.

Reuters

Bhatia's appointment as MD also comes at a time when the country's largest airline posted a profit after tax of Rs 129.8 crore in the three months ended December 2021 amid the pandemic clouds.

InterGlobe Aviation, the parent of IndiGo, had slipped into a loss of Rs 620.1 crore in the year-ago period.

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