What! Indigo Airlines is in trouble

Rahul Bhatia and Rakesh Gangwal together own 75% shares of Indigo airlines.

Business Standard reports that India’s biggest airline Indigo Airlines is in trouble. Its founders Rahul Bhatia (he owns 38%) and Rakesh Gangwal ( he owns 37%) have hired law firms to sort out the differences.

What are the differences?

The core reason for the differences is the expansion strategy. While Rakesh Gangwal is keen to expand internationally, Rahul Bhatia wants to consolidate the domestic market. Indigo owns a fleet of more than 200 airlines, with nearly 50% of the Indian market share, and 6.5% of the international marketshare. Another reason is the management stye of Rakesh Gangwal, who has recruited expatriates.

How will it affect the airlines?

Its stocks have crashed by 10%. Rahul Bhatia has the management control, though Rakesh Gangwal has the board seat. Business Standard reports that both may resolve the dispute amicable.