Rakesh Gangwal's Strategic Moves in the Aviation Industry

Rakesh Gangwal, co-founder of IndiGo, acquired 3.6 million shares of Southwest Airlines for USD 108 million amid ongoing strategic shifts in the aviation industry. This move follows his reduction of stake in IndiGo, attributable to a fallout with co-founder Rahul Bhatia.

Rakesh Gangwal, a pivotal figure in the aviation sector and co-founder of IndiGo, has made a significant investment by acquiring 3.6 million shares in Southwest Airlines. The transaction, totaling USD 108 million, was conducted amid calls for major changes at Southwest, led by Elliott Investment Management.

Data from the US Securities and Exchange Commission reveals that the purchases occurred on September 30 and October 1, at prices ranging between USD 29 and 30 per share. This strategic acquisition marks Gangwal's increasing involvement with the American airline.

Concurrently, Gangwal has been divesting his IndiGo holdings due to a dispute with fellow co-founder Rahul Bhatia. In August, his family trust offloaded a 5.83 percent stake in IndiGo, reducing their combined holdings significantly. Gangwal had announced plans to gradually exit IndiGo's board, highlighting ongoing tensions in the leadership.

(With inputs from agencies.)