IndiGo Appoints Co-Founder Rahul Bhatia As Managing Director

InterGlobe Aviation Ltd., the parent of budget carrier IndiGo, appointed co-founder Rahul Bhatia as its managing director, a month after shareholders approved the removal of a contentious clause that completed the settlement between the carrier's two feuding promoters.

Bhatia will not draw any remuneration from the company during his five-year tenure, other than the benefits or perquisites to which he is entitled to as per the rules of the company, it added.

The appointment marks the next phase for the carrier that saw Bhatia feud with the other founder, Rakesh Gangwal, over share-transfer restrictions and governance issues. The legal battle ended with an international arbitrator asking Gangwal to pay Bhatia $50,000 claim, and allowing his own counterclaim seeking removal of restrictions of share sale by founders. The two own 74.44% of the airline between themselves.

While Bhatia has been named the managing director, IndiGo also has a chief executive officer in Ronojoy Dutta.

Bhatia said in a statement that his agenda would be "transformational" and would focus on expanding the airline’s presence in India and in international markets, and building the brand for the long term.

Bhatia, who holds an electrical engineering degree from the University of Waterloo in Ontario, Canada, is the vice-chairman and promoter of InterGlobe Enterprises Ltd. He has over three decades of experience in the travel industry.

“This (Bhatia's appointment) will further strengthen the airline in the years ahead,” IndiGo Chairman Meleveetil Damodaran said in a statement. Bhatia would oversee all aspects of the airline, and actively lead the management team, he said.

The low-cost airline on Friday swung to surprise profit in the third quarter, ending a series of quarterly losses driven by the pandemic.

IndiGo reported a net profit of Rs 128.5 crore for the three months ended December, according to its filing. Analyst estimates compiled by Bloomberg had expected a loss of Rs 415.3 crore. Revenue jumped nearly 89% at Rs 9,294.8 crore.

“I am pleased that we were able to report a profit for the third quarter,” CEO 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.”

Shares of InterGlobe Aviation closed 1.52% higher before the results were announced compared with a 0.25% fall in the Nifty 50.

Other Highlights

• Ebitdar at Rs 1,905.2 crore against Rs 903.01 crore a year earlier.

• Margin at 20.5% vs 18.4%.