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What happened
IiAS, a proxy advisory firm, has raised significant concerns about the governance of InterGlobe Aviation, which operates IndiGo. The firm criticized the board for its inadequate oversight regarding customer satisfaction and regulatory compliance. It highlighted that the board's complacency, stemming from IndiGo's dominant market position, has led to a failure in managing risks and stakeholders effectively. IiAS pointed out that the establishment of a crisis management committee is a response that comes too late, as the company is already working to restore normal operations. The firm warned that if the board does not take decisive action, regulatory authorities may need to intervene.
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Key insights
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Board Oversight Criticized: IiAS criticized IndiGo's board for failing to manage risks and stakeholder interests.
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Customer Satisfaction Issues: The firm highlighted ongoing problems with customer satisfaction at IndiGo.
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Regulatory Intervention Possible: IiAS suggested that regulatory authorities may need to step in if the board does not act.
Takeaways
The criticisms from IiAS highlight significant governance issues at IndiGo that could impact its reputation. Effective leadership from the board is essential to address these concerns.