IiAS raises concerns over oversight, culture at IndiGo

Mumbai: Proxy advisory firm IiAS said the ongoing issues at InterGlobe Aviation raise concerns over the board's oversight and the company's culture towards regulatory compliance and customer satisfaction.

The firm, which advises institutional investors on governance, criticised Indigo for assuming it can afford customer apathy due to its dominant position in the airline industry. It said the fallout of the episode on the company's reputation will be enduring, though "not a complete loss".

"This attitude should not be acceptable to a board of experienced aviation professionals and bureaucrats. The board has allowed the situation to get out of hand: a failure of risk management, stakeholder management and basic operational excellence," said IiAs in a note.


The firm said the formation of a crisis management committee now, when it is already in the process of getting its operations back to normalcy, is a "measure too late".

"Someone needs to step up and demonstrate leadership - it will be a shame if it is the regulator and not the board," said IiAS.