IndiGo parent posts record profit amid clash between co-founders

IndiGo posted its highest quarterly profit after tax Friday, as it worked to assuage fears that a founder spat would impact operations. InterGlobe Aviation said profit after tax surged to US$175m, as the company took over passengers and routes following the collapse of Jet Airways in April. The strong results come as IndiGo is working to contain a power struggle between the 2 billionaire founders of the budget carrier. July 8, Rakesh Gangwal wrote a letter to the Securities and Exchange Board of India asking it to intervene over alleged violations of “fundamental governance norms” through a shareholding agreement that gives Rahul Bhatia greater control of the company. He further alleged that Bhatia has built an “ecosystem” of related-party transactions that were signed without audit committee approval. <br/>