IndiGo: Cruising in Market but Crashing Within

Reeti Kulshrestha, Arunaditya Sahay and Subhanjan Sengupta

Asian Journal of Management Cases, 2024, vol. 21, issue 1, 24-38

Abstract: M. Damodaran, 1 chairman IndiGo, has a lot on his plate, and the servings are not over yet. What happened on 26 April 2019, was just a precursor to what was eventually to follow. Aditya Ghosh, 2 the longstanding director of InterGlobe 3 for 10 years, resigned from his position, making way for Greg Taylor 4 as president and chief executive officer (CEO). Rahul Bhatia 5 became the interim CEO. This, ironically, happened when the airline had bagged in traffic rights to as many as 15 countries, including France, UK and Germany. The most ill-timed dispute between the two co-founders of IndiGo, Rakesh Gangwal 6 and Rahul Bhatia, which had been brewing for about a year, came out in the open on 16 July 2019, at the most inopportune moment. Rakesh Gangwal alleged violations of corporate governance rule at IndiGo 7 and requested the Securities and Exchange Board of India 8 (SEBI) to intervene. The feud between the founders of InterGlobe Aviation Ltd. opened a can of worms, although Gangwal was not inclined to sell or raise his stakes. Analysts wondered about the timing of the complaints to SEBI: Why now? Will IndiGo be able to come out of this predicament or follow Kingfisher and Jet Airways’ footsteps? 11 Will it be yet another episode of shallow vested interests? Will this lead to the downfall of IndiGo, 12 or will it survive the turbulence and keep flying like a phoenix?

Keywords: Aviation industry; corporate governance; corporate strategy; IndiGo (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:anjomc:v:21:y:2024:i:1:p:24-38

DOI: 10.1177/0972820121994959

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