IndiGo CEO says co-founder has no intention to take control of company

WION Web Team New Delhi, Delhi, India May 19, 2019, 08.24 AM(IST)

File photo. Photograph:( AFP )

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InterGlobe's shares fell 9 per cent on Thursday after a report said that the co-founders and two largest shareholders were at odds over its expansion. The shares were up slightly on Friday.

IndiGo's Cheif Executive said on Saturday that one of its co-founders has no plans to take control of the carrier amid reports of difference between the two co-founders, reported news agency Reuters. 

The CEO's comment comes two days after parent InterGlobe Aviation Ltd shares fell 9 per cent over a media report that the co-founders and two largest shareholders were at odds over its expansion. 

The shares were slightly up on Friday.

Co-founders Rahul Bhatia and Rakesh Gangwal, along with their respective families, each control stakes of slightly less than 40 per cent in the airline's holding company, giving them both a major say in its strategy and plans.

"I am authorized by Mr. Rakesh Gangwal to make the following statement on his behalf - 'I am categorically and clearly stating that there is no interest or desire whatsoever on the part of the RG Group to take control of the company'," Ronojoy Dutta, Chief Executive of IndiGo said in a statement.

IndiGo, SpiceJet and GoAir have been rushing to fill the vacuum left by the collapse of Jet Airways, once India's largest carrier, and gain control of its valuable slots.

IndiGo, launched in 2006, has a nearly 47 per cent market share in India. The airline has a fleet of 225 aircraft and flies to more than 70 destinations globally.