New Delhi: InterGlobe Aviation Ltd., which operates the country’s largest airline, IndiGo, hopes to grow at 30% a year over the next few years, chief executive of the airline Ronojoy Dutta said at the company’s sixteenth annual general meeting on Tuesday.
“We expect that half of that growth will go international, half will go domestic,” Dutta told the shareholders of the company. He was very optimistic about the international operations of the airline, he added.
The airline is looking at wide body aircraft as well as Airbus A321 XLR for its international operations.
IndiGo currently operates Airbus A320 Neo, Airbus A320 CEO, Airbus A321 aircraft, which connects domestic as well as nearby international destinations.
The airline currently has around 238 aircraft in its fleet consisting of narrow body aircraft and ATRs.
“We are looking at the plan for wide body (aircraft). It would not make sense, if we launch wide body aircraft without business class,” Dutta said.
Meanwhile, Rakesh Gangwal, co promoter of the airline, who had earlier accused promoter Rahul Bhatia of violating corporate governance norms, questioned related-party transactions and sought more independent directors on-board, was not present at the AGM. Also, absent from the AGM was Anupam Khanna, one of the independent directors of the airline.
This led to several shareholders raising questions on the absence of Gangwal.
Bhatia has denied the allegations.
Dutta told shareholders that related-party transactions (RPTs) of Rahul Bhatia-led InterGlobe Enterprises (IGE) with the airline amount to less than 1% of the total annual turnover of the company, currently at around ?30,000 crore.
The current value of RPTs (between IGE and IndiGo) is around ?156 crore, Dutta said. All RPTs had been approved by the audit committee and were at an arms length, he added.
Rahul Bhatia-controlled InterGlobe Enterprises (IGE) has maintained that there are no evidence to substantiate the allegations on related-party transactions between the airline and IGE. The disagreement led to Gangwal opposing the special resolution at the AGM unless another resolution was passed by the board to prevent the IGE Group from attaining more power and until a new policy on RPTs was adopted by the company.
Rakesh Gangwal and his associates hold nearly 37% in InterGlobe Aviation, while Rahul Bhatia’s IGE Group holds around 38%. Although the two groups own roughly similar stakes, an initial agreement gave special rights to Bhatia’s IGE Group.
News Source: livemint.com