According to a news report, Tata group is exploring a significant revamp of Air India, with talks underway with global consulting firm McKinsey & Company to lead a comprehensive overhaul. This development comes as Air India faces one of its most severe crises in recent years.
According to a report, a senior Tata Sons official recently met a McKinsey senior partner in Mumbai to discuss a revival strategy for Air India. The meeting occurred shortly after the tragic crash of a London-bound Air India Boeing Dreamliner shortly after takeoff from Ahmedabad, which resulted in 241 fatalities and one survivor.
McKinsey & Company has not confirmed any active transformation project with the Tata group regarding Air India, stating no public comment on client engagements. Similarly, Tata group officials have withheld comments on the discussions.
McKinsey’s relationship with Air India dates back almost eight years. In 2017, the airline selected the firm to assist with its long-term strategic business plan. This included cash flow management, route network optimisation, marketing strategies and loyalty programme updates.
The consulting firm has thus played a role in shaping some key strategic decisions at Air India well before the Tata acquisition.
The historic merger of Tata SIA Airlines Ltd (Vistara) with Air India was advised by Watson Farley & Williams (WFW). This created a unified full-service carrier under the Air India brand. Earlier, Air India Express and AIX Connect, the group’s low-cost airlines, also merged.
The consolidated Air India Group now serves more than 90 international destinations and is the second largest domestic carrier in India. The Indian aviation market ranks as the third largest globally and is among the fastest growing.
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Founded in 1932, Air India has developed an extensive global network. Its ongoing five-year transformation programme, Vihaan.AI, aims to establish the group as a world-class aviation company.
For FY2024, Air India reported a loss of ₹4,444.10 crore, a 60% reduction compared to ₹11,388 crore in FY2023. Meanwhile, turnover increased by 23.69% to ₹38,812 crore, signalling improving financial health.
The recent Dreamliner crash has intensified focus on the Tata group’s efforts to restore Air India’s reputation. Tata Sons Chairman N Chandrasekaran addressed employees at the Gurugram headquarters, expressing solidarity and commitment.
He described his visit to the crash site as deeply moving and urged employees to remain strong and determined despite criticism and challenges.
The discussions between the Tata group and McKinsey mark a potential new phase in Air India’s transformation amid ongoing operational challenges. With a history of strategic collaboration and a broad restructuring underway, these efforts aim to strengthen the airline’s position in the rapidly growing Indian aviation market.
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Published on: Jun 17, 2025, 1:44 PM IST
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