Gangwal would use his 20-plus years of aviation expertise to take care of aircraft and related acquisitions, design airline's network, and other handle operational issues. Gangwal maintains that the fight germinates from lax corporate governance practices at IndiGo, and particularly the dubious RPTs between IndiGo and the companies personally owned by Bhatia. Bhatia and his father left the company. Due to which Airbus was very much fine with accepting his terms. IndiGo currently has flights to and from over 60 domestic destinations in India. Rahul and his father had been talking about starting an airline, but Rakesh was somehow hesitant of getting into the business, due to the high mortality rate of the industry. As of date, IndiGo accounts for a total of 109 Aircrafts, and operates 818 flights to 40 destinations (35 in India and 5 abroad) in a day. But, the power of relationships triumphed and all the airlines whose business had been with the old company moved to InterGlobe without exception. In 1994, they also managed to gain the all-India franchise for what is now Galileo International (an airline reservation system), and then a Joint Venture with them to provide back-office services in 1999, as well. "A public disagreement is not healthy for any company. IndiGo got its airline license in 2004 but didn't take off until 2006. At IndiGo, the arrangement between Bhatia and Gangwal was demarcated. IndiGo was born with both partners owning 50 per cent stake each. After completing his degree he had come back to India with an aim to set up a telecom venture with Nortel to make digital telephone exchanges. Photo: BriYYZ via Wikimedia Commons IndiGo will come back strong. Chairman of Manipal Global Education & former CFO of Infosys, Founder & Chairman of Dalian Wanda Group. ... quarter horse named Indigo. With a net worth of $3.6 Billion – Rahul Bhatia is the 38th richest person in India and the founder of InterGlobe Enterprises Limited that owns IndiGo, the largest and most profitable airline in India. The success of IndiGo is largely because of their unique business model and operational strategies used by the company. And with a 36.8% market share, the company has grown on to become the largest airline in India. Travel was never the first career choice for Rahul! To top that, he made headlines and shocked everyone when he went shopping and ordered 100 Airbus A320-200 aircraft, at $6.5 billion at the Paris Air Show in 2005. It is to dilute the control of the IGE Group and... indeed to malign the image and reputation of the IGE Group.". This was when IndiGo had not even been launched. Soon, they also surpassed several competitors to become the second largest and fastest growing low-cost carrier in Asia just behind Indonesian airline Lion Air. Talking about his personality, Rahul is one of the very few guys from the airline industry who prefers to casual shirts to business suits, holds an understated approach and maintains a low profile to avoiding external distractions and to stay focused on business and can be seen running away from the spotlight. All he had with him was a degree along with a two-year stint at IBM. Interglobe Aviation on Thursday posted a quarterly loss of Rs 1,062 crore, its biggest ever since the owner of IndiGo airline went public four years ago, primarily due to its failure to keep a check on costs. Once bitten, twice shy. Even then, they managed to close a deal for 100 aircrafts and at a low down payment. IndiGo will lay off 10 per cent of its staff as the coronavirus pandemic has forced it to re-evaluate its "best-laid plans", the airline's CEO Ronojoy Dutta, said on Monday. 3 Min Read. ", "It is sheer greed to hijack the company and grab rights, which the RG Group currently does not enjoy, that is motivating this action. By Reuters Staff. It is the largest airline in India by passengers carried and fleet size. And helps the airline to fly about 12 hours every day! According to IndiGo’s CEO, 2019 was a year of two halves – the first involving declines resulting in losses due to high fuel prices and a weak rupee, in addition to fierce competition. As a Business Writer; Karan’s forte lies in writing some really interesting Case Studies about Companies/Eminent Personalities covering aspects which certainly, would not bore you to death! Success Entrepreneur Community Invites You To Celebrate Your Success, Share Your Wisdom & Tell Us About Your Journey, Chairperson and Managing Director of Biozone Research Technologies Pvt. The incident may have played its role in structuring the InterGlobe Aviation's shareholder agreement-all heavily loaded in favour of Bhatia. IndiGo Airlines continues to perform well, reporting net profits worth Rs 1200 crore in the first quarter of FY 2020, despite subdued demand. Even though Gangwal denies it, Bhatia camp has been accusing RG Group of gaining control over the airline. The bitter fight between the two started around last year - at least that's what the Gangwal's recent letter to SEBI (Securities and Exchange Board of India) has highlighted. For now, the ball is in the SEBI's court which will have to take a call on how to deal with in a corporate battle which also involves alleged flouting of its guidelines. The result for the next quarter is likely to be even worse, as the airline was grounded until just over a week ago. The persistent man that he was, Rahul waited till he convinced Rakesh. IndiGo is a low-cost airline headquartered at Gurgaon, Haryana, India. All rights reserved. Order Online Tickets Tickets See Availability Directions {{::location.tagLine.value.text}} Sponsored … Beginning last October, both sides started firing letters addressed to the company board accusing each other of mala fide intentions. Second, Indigo has inducted Airbus A320neo family to their fleet, which claims to deliver 15% less fuel consumption and 8% lower operating costs. Find the travel option that best suits you. A note is also mentioned on the plane that asks passengers to pull the window shades down and rearrange their seat belts to the original position before leaving the plane. Other than that, the advantage IndiGo also had was that they were making a bulk deal, which helped them bring down a lot of costs too! With aviation fuel prices soaring, and the rupee dropping, these were some of the most difficult days for the Indian airline industry. In travel, transportation and hospitality space unsung hero and hospitality space firing letters addressed to the end. 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