The differences between the promoters of IndiGo, Rahul Bhatia and Rakesh Gangwal, have been resolved and the company should now focus on aggressive international expansion, CEO Ronojoy Dutta told employees in an e-mail.
"So Phew! I am glad that the differences have been resolved and we can all discard the shallow breathing borne out of anxiety and take deep yoga breaths as we restore our tranquillity," Dutta wrote to the employees.
Dutta also informed the employees that the airline had a "good" annual general meeting on August 27 followed by "a very constructive" board meeting on August 30, which addressed the two contentious issues of related-party transaction policy and the size and composition of the new board.
At its 16th annual general meeting, the shareholders approved a special resolution to amend the articles of association in order to increase the board size to a maximum of 10 members, including four independent directors.
"I am pleased to tell you that both the issues have been satisfactorily sorted out. We have made some procedural changes to our existing RPT policy and the revised policy has been unanimously approved by the board. Also, the board will be expanded to 10 members and four of the directors will be independent," Dutta said, adding that "it is always nice when different branches of the family make peace with each other."
Talking about the company's international network, Dutta said that the airline would have added 41 new international flights year on year by October, its rate of international growth would be 109 percent and international would come to represent 25 percent of its system.
"We should think of our home turf as a rough circle which extends from Delhi to Istanbul to Singapore to Hong Kong to Chengdu and back to Delhi. There is a lot of empty space within the circle and we should fill up that space in IndiGo colours in hurried impatience," Dutta added.
Dutta's email to employees comes at a time when the two promoters have declared a truce over the differences on corporate governance and related-party transactions but it is not peace yet.
While the bitter dispute was brewing between the two promoters since nearly a year over disagreements on corporate governance and related-party transactions, it came to light when Gangwal wrote a letter on July 8 to market regulator Sebi, Ministry of Corporate Affairs and BSE on the same. However, on August 23, Gangwal issued a statement and sent signals of truce.
“The Board has now approved a new related-party transaction policy and to also close an open issue if the Articles of Association are amended at the upcoming August 27 AGM to increase the Board size to 10 Directors. While much work lies ahead, including mending some fences and the regulators completing their investigations on the governance issues raised with them, it is gratifying to see progress towards better governance,” Gangwal had said.
"Thus the emotional impediment has been removed and the expansive growth into new horizons continues at high speed. Safety first, and please provide our customers with a courteous, hassle free service both in the air and on the ground," Dutta told employees today.
First Published: IST