Published on
November 7, 2025
The recent developments surrounding IndiGo Airlines, one of India’s most profitable and influential carriers, have reignited discussions across both the aviation and corporate governance sectors. Founded in 2005 through a partnership between Rakesh Gangwal and Rahul Bhatia, IndiGo transformed Indian air travel by introducing unmatched efficiency, affordability, and punctuality. Yet, while the airline continues its global ascent, the quiet and steady withdrawal of Rakesh Gangwal from the company signals a significant shift in the leadership dynamics of India’s aviation landscape. His decision to gradually divest his shares—valued at over Rs 45,000 crore—comes at a time when IndiGo faces headwinds such as currency volatility and operational disruptions. However, the airline remains robust, preparing for international expansion and a future built on stronger financial resilience. Gangwal’s departure reflects not merely a change in ownership but also an evolution in India’s corporate ethos—where transparency, governance, and institutional ownership take center stage. This turning point in IndiGo’s journey highlights how India’s aviation industry is moving from a founder-led era to one driven by global competitiveness and accountability.
A Silent Exit from a Sky-High Success Story
The story of Rakesh Gangwal’s gradual withdrawal from IndiGo Airlines has captured considerable attention within India’s travel and tourism circles. His exit unfolded quietly but symbolically, marking the end of a partnership that had once redefined how millions of Indians flew. While the airline announced a rare quarterly loss recently, its fundamentals remained strong. Operational revenue surged by 9.3 percent to Rs 18,555 crore, and without the sharp impact of currency depreciation, IndiGo would have posted a profit of Rs 103.9 crore. The loss of Rs 2,582.10 crore was primarily the result of a staggering Rs 2,892 crore foreign exchange loss due to the weakening rupee.
This phase coincided with Gangwal’s near completion of his share sale, reducing his holding from over 36 percent in December 2021 to below 5 percent by October 2025. Over the past year alone, he sold nearly 9 percent of his stake through large block deals worth more than Rs 13,800 crore, making his total exit proceeds exceed Rs 45,000 crore. His departure, unlike many dramatic corporate exits, was orchestrated gradually, ensuring market stability and confidence among investors.
From Collaboration to Conflict
The partnership between Rahul Bhatia and Rakesh Gangwal was once celebrated as a model of complementary strengths. Bhatia contributed deep local business expertise through InterGlobe Enterprises, while Gangwal brought international airline management experience from his time at US Airways and United Airlines. Together, they created a carrier that transformed India’s domestic aviation landscape, introducing round-the-clock connectivity, competitive pricing, and world-class operational discipline.
However, over time, tensions emerged. Differences arose over corporate governance, particularly regarding related-party transactions and board independence. Gangwal reportedly became uncomfortable with the level of control exercised by InterGlobe Enterprises, led by Bhatia, believing that no single promoter should dominate a publicly listed company of IndiGo’s scale. The disagreements deepened, leading to complaints filed with SEBI in 2019 and subsequent arbitration proceedings in London.
The legal conflict centered on a shareholders’ agreement that granted extensive veto rights to both founders, effectively creating a governance deadlock. The eventual arbitration outcome in 2021 led to the dismantling of these restrictive clauses, paving the way for Gangwal’s exit on his own terms.
The Principles Behind the Departure
Contrary to speculation, Gangwal’s exit was not driven by financial motives or business distress. IndiGo continued to dominate the Indian skies, maintaining its status as the most efficient and profitable airline in the country. Instead, his decision was guided by principle. He envisioned a structure where corporate governance evolved alongside the company’s growth and where institutional ownership played a greater role in shaping strategy.
The imbalance of control and perceived conflicts of interest within the boardroom reportedly made Gangwal uneasy. Rather than remain embroiled in protracted disputes, he opted for a dignified withdrawal. In February 2022, he resigned from the airline’s board and announced a five-year phased exit plan. True to his word, by 2025, his shareholding had nearly vanished—his departure executed with the same precision and discipline that once defined IndiGo’s operational ethos.
Financial Turbulence and Operational Stability
IndiGo’s recent financial results present a mixed picture of challenge and resilience. The airline’s revenue from operations stood at Rs 18,555 crore, marking a 9.3 percent rise, while total expenses increased to Rs 22,081 crore, up 18.3 percent year-on-year. Despite posting a net loss of Rs 2,582.10 crore, the majority stemmed from foreign exchange fluctuations rather than operational inefficiencies.
The EBITDA dropped to Rs 579.5 crore, down 64.2 percent, though when adjusted for forex losses, it stood at Rs 3,791.6 crore with a healthy 20.4 percent margin. Operationally, IndiGo has managed to reduce the number of grounded aircraft from around 70 to 40, aided by damp leases and better aircraft availability. The airline’s leadership, under CEO Pieter Elbers, has reiterated confidence in the company’s growth trajectory, emphasizing its upcoming global expansion with the induction of Airbus A321 XLR aircraft starting December 2025.
This expansion aims to strengthen international operations, earn in stronger currencies, and reduce exposure to rupee depreciation—a strategic step toward a natural foreign exchange hedge.
A New Chapter for India’s Aviation Industry
Gangwal’s exit is not merely a personal decision; it signifies a broader transformation in India’s corporate and aviation landscape. IndiGo’s shift from a promoter-led structure to one dominated by institutional investors reflects a maturing market. Greater transparency and governance can enhance investor confidence and attract long-term global partnerships, essential for India’s expanding tourism and travel ecosystem.
Moreover, IndiGo’s focus on global connectivity aligns with India’s broader tourism ambitions. As it expands routes linking Asia, Europe, and the Middle East, the airline is not only strengthening its position in aviation but also contributing significantly to India’s tourism economy, enabling easier access for international travelers.
However, this transition also brings new challenges. With a more diversified ownership comes the need for cohesive strategic direction. The absence of one of its visionary co-founders means IndiGo must now prove that it can sustain its operational excellence and profitability while adapting to a more decentralized governance model.
Charting the Future Flight Path
As IndiGo Airlines navigates this period of change, the key test lies in balancing scale, governance, and global ambition. The airline’s cost discipline, fleet management strategy, and expanding route network continue to anchor its market leadership. Yet, as the airline’s ownership evolves, it must uphold the principles of accountability and transparency that Rakesh Gangwal championed.
His exit, while ending an era, may ultimately strengthen IndiGo’s institutional foundation. It signals a future where India’s aviation sector matures beyond personalities, becoming part of a broader ecosystem of sustainable, well-governed global travel enterprises.
In essence, the story of Gangwal’s departure from IndiGo is not just about an individual stepping away—it is about how India’s aviation and tourism sectors are preparing for a future defined by global standards, robust governance, and the unwavering pursuit of excellence.
