IndiGo crisis: Potential shift in power equation behind friction
MUMBAI: A potential shift in the power equation, with the imminent expiry of shareholders’ agreement (SHA) and articles of association (AoA) of InterGlobe Aviation Ltd in October, has emerged as the probable reason for the estrangement between the airline’s co-promoters Rakesh Gangwal and Rahul Bhatia.
As internal company memos surface, it is becoming clear that the likely shift in power equations is driving discussions regarding related party transactions (RPTs) and original equipment manufacturers (OEM) orders.
A 12 June letter by Bhatia to the board and the company secretary of InterGlobe Aviation reveals that the public tussle between Bhatia and Gangwal actually stems from the potential shift in power to manage and control Indigo’s businesses, with the company’s SHA and AoA coming up for renewal in October. Mint has reviewed the letter.
