The war of words have given way to conciliatory postures. But will IndiGo co-founders Rahul Bhatia and Rakesh Gangwal, two friends who had turned business partners but only to become foes, ever work together again?
It is a question to which neither side is willing to give a clear answer.
One thing that could point to an answer will be the future role of Gangwal in the airline. The industry veteran had been crucial in striking aircraft orders on terms that have been extremely beneficial for IndiGo.
But mounting differences between the founders had seen Bhatia change tack. Gangwal was not involved in the $20 billion contract that IndiGo placed in June for LEAP-1A engines with the US-based CFM International.
Bhatia had proudly declared that the company was now equipped to negotiate these orders. Internally, an in a subtle potshot at his fellow co-founder, Bhatia has generously shared how the CFM contract was much more profitable for the company than any previous contracts.
Thus is it very unlikely that Gangwal would immediately take an operational role in the airline.
"He wants to keep focus on governance issues," said a senior executive from the industry. "Over time, if circumstances and environment are good, then he could consider playing a role," added the executive.
Making right noises
At the recently held IndiGo AGM on August 27, chairman M Damodaran hinted that the things are on the mend. "They have been talking to each other and I think there will be a solution round the corner. I am an optimist. So let us see what the future holds," The Hindu BusinessLine quoted him has as saying.
The optimism comes after Gangwal agreed to support the changes in the Articles of Association of IndiGo, after the 'loophole' he had pointed out was plugged. That paved the way for expanding IndiGo board from six to 10 directors. This will include a woman independent director, a first for the airline.
Apart from that, the company policy towards related party transactions have also been tweaked. Now each transaction will have to be cleared by the Board. This was necessitated after Gangwal alleged that Bhatia's privately held InterGlobe Enterprises had benefited from these transactions.
But speaking at the AGM, IndiGo Chief Executive Ronojoy Dutta again reiterated that the transactions were minuscule, and the present value is Rs 150 crore.
On his part, Bhatia has previously underlined that the company has to outgrow its parents. And he reiterated the point at the AGM.
But when a shareholder questioned Gangwal's absence from the AGM, Bhatia quickly pointed out, "Main Hoon Na!"
Those who have known the entrepreneur say that Bhatia will continue to be involved in the airline. He may no longer be the interim CEO, the post he held after then President Aditya Ghosh left the airline. Also, the airline now has a senior leadership that has 11 executives at the top.
But still, industry observers expect Bhatia to be closely involved with the airline - especially as it embarks on an ambitious international expansion.
Does that mean the two founders will be okay to work with each other? After all, it was their partnership that turned IndiGo into the largest Indian airline within a decade of its launch.
"Only time will tell. And time does heal (relationships)," said the senior executive quoted earlier.
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