Indigo is acknowledged both by the cognoscenti as well as by the travelers as the best-

run airline in the country though of late its turnaround time is also getting little sluggish
causing delays in departures and arrivals. But that is something fliers have been taking
in their strides just as they are only mildly bemused by the going tussle the two feisty
promoters of the low-cost airline. It is, however, equally true that IndiGo apart from
being hit by the ‘delay’ malaise characterising most of the airlines is also plagued by the
prospects of losses.
For the December quarter, IndiGo had reported a 75 percent  to Rs 190 crore. It is this
element that has caused consternation among its well-wishers over the spat at a time
when they should be pulling up their socks and seeking to capitalize on the void left by
Jet Airways.
Though there are reports of they going to National Company Law Tribunal (NCLT) for
resolution of their differences, to those who are aware of company law and
jurisprudence it appears their differences are not insurmountable. If anything, they are
healthy differences of opinion between two shrewd businessmen who have entered into
shareholders’ agreement for good measure.

Shareholders’ agreement is a private agreement between two sets of dominant

shareholders—usually the foreign collaborator and the Indian promoter---outside of the
articles of association. It is a secretive document they set store by in case of
differences. The Supreme Court has made it clear that such agreement can be enforced
by the two parties but not by making the company itself a party to it unless the terms of
such agreement are made part of the articles of association. Be that as it may

It was IndiGo that won rave reviews when it placed a massive order with Airbus
Industries for delivery of more than 100 aircraft in a phased manner but at a fixed price.
In contrast, Air India was pilloried for procuring almost the same number of aircraft in
one go thereby committing a cardinal sin----unused capacity. IndiGo staggered the
deliveries to coincide with the anticipated fleet expansion warranted by new routes and
expansion of services on the existing routes.

This time round it seems the two groups are unable to agree on the course of
expansion. The Gangwal group owning 37 percent stake is reportedly keen on
expanding IndiGo’s international operations by sticking to narrow-bodied aircraft
whereas the Bhatia group owning 38 percent wants multiple-aisled wide-bodied aircraft
for international operations. A single aisle aircraft consumes that much less fuel and
maintenance