IndiGo plans new flight after Gangwal’s exit

In his letter to the airline’s board members, Gangwal said he intended to gradually reduce his equity stake in the company without taking advantage of “unpublished price sensitive information”. To allow him to profit from the increase in the company’s share price, as well as to allow new investors to whom he will sell his stake in the potential future growth of the airline, which is India’s largest by market share. .

Gangwal and Bhatia together account for about 75% of the airline. The latter owns about 14.65%; His wife owns another 8.39% shares of the airline. The dispute between the two co-promoters started in 2019, when Gangwal accused Bhatia of matters related to corporate governance of the company.

Without either of these, Indigo could not have taken the field. Gangwal, a former CEO and chairman of the US Airways Group, brought much of his aviation expertise to the airline. IndiGo could not have created a global record by becoming the first airline in the world to order 100 aircraft without their support. If IndiGo commands a market share of more than 50% of India’s air travel, it is in large part due to its large fleet of over 275 aircraft, which makes Gangwal in Global Aviation and its vendor for a nascent airline. It would have been impossible to submit without the condition. Communication skills. Globally, the monopoly of Boeing and Airbus usually does not accept large orders from startups. Nevertheless, the airline could not have gained wings without Bhatia’s deep understanding of Indian air travel, gained from decades of experience as an airline’s general sales agent, and his extensive networking skills given the airline business in this country. depend more. , approvals and approvals from government agencies and authorities.

Gangwal’s decision was made public on the day IndiGo took delivery of its first Sustainable Aviation Fuel (SAF)-powered aircraft from Airbus. This aircraft, an Airbus A320 new engine option, flying to India from Airbus Headquarters, Toulouse in France, is the first international operation by an Indian carrier to use SAF. The exit is the first step in the co-promoters’ separation methods, as Snapview wrote on December 31, after being brought to an amicable solution with the airline’s board approved amendments to its articles of association. This allowed the promoters to sell. their shares without needing to give them to another first.

Earlier this month, Bhatia took over as managing director of IndiGo, tightening his control over the day-to-day operations of the airline, leaving no doubt that Gangwal was stepping out. With the word Go, the Delhi businessman has been aiming to make the company profitable for which he has adopted a strategy to cut costs and expand the route network.

While no one is irreplaceable, it remains to be seen who Bhatia will invite to step in Gangwal’s shoes. Notably, an Indian aviation expert currently posted abroad and skilled in negotiating with aircraft and engine manufacturers will be brought in.

The exit is also expected to change the company’s board as directors considered close to Gangwal may follow in his footsteps. At the height of a public dispute between the two co-promoters, law enforcement in the US, acting on Bhatia’s complaint, began searching the premises of a director.

Undoubtedly, IndiGo is launching a new UDAN scheme.