A month after shareholders approved the removal of a contentious clause that finalised the settlement between IndiGo’s two fighting promoters, InterGlobe Aviation Ltd., the parent company of budget carrier IndiGo, named co-founder Rahul Bhatia as its Managing Director. Bhatia would not be paid by the firm during his five-year tenure, except for the benefits and perquisites he is entitled to under the company’s guidelines.
The position is the next step in Bhatia’s career, which has seen his dispute with the company’s other founder, Rakesh Gangwal, over share-transfer limitations and governance difficulties. An international arbitration ordered Gangwal to pay Bhatia $50,000 and allowed his counterclaim, which sought the relaxation of limits on founders selling their shares. Between them, they own 74.44% of the airline.
While Bhatia has been designated as the Managing Director, IndiGo also has Ronojoy Dutta as its Chief Executive Officer. In a statement, Bhatia said his goal would be ‘transformational’, focusing on extending the airline’s presence in India and worldwide markets and long-term brand growth.
Bhatia is the Vice Chairman and Promoter of InterGlobe Enterprises Ltd and possesses an Electrical Engineering degree from the University of Waterloo in Ontario, Canada. He has worked in the travel industry for almost three decades.
In a statement issued to the media, IndiGo Chairman Meleveetil Damodaran said, “Bhatia’s appointment would further enhance the airline in the years ahead.” Bhatia will be in charge of all elements of the airline and would actively guide the management team, according to him.
IndiGo Reports Profit in Q3
The low-cost carrier reported an unexpected profit in the third quarter on Friday, ending a string of quarterly losses caused by the COVID-19 pandemic. According to its statement, IndiGo made a net profit of Rs 128.5 crore in the three months ended in December.
“I am pleased that we were able to report a profit for the third quarter,” IndiGo CEO Ronojoy Dutta said in a statement. “It demonstrates that our business model is fundamentally strong. Our employees have remained a pillar of strength throughout this health crisis and have steadfastly provided superior service to our customers.”