Tata Group wants McKinsey's help for revamping Air India
17 Jun 2025

Tata Group is considering a major overhaul of Air India, its flagship airline.

The conglomerate has been in discussions with consulting firm McKinsey & Company for potential assistance in the process, as per The Indian Express.

The move comes as Air India faces one of the worst crises in its recent history, due to the Dreamliner aircraft crash.

A senior partner at McKinsey recently met with a top Tata Sons executive in Mumbai to discuss strategies for reviving the airline.

When did the meeting take place?
Timeline

The meeting between Tata Group and McKinsey took place just days after an Air India Boeing Dreamliner bound for London, crashed shortly after taking off from Ahmedabad.

The incident claimed the lives of 241 passengers as well as crew. Only one passenger had survived the ordeal.

To note, McKinsey has denied claims that it is currently working for Air India.

McKinsey's previous engagement with Air India
Past collaboration

This isn't the first time McKinsey has worked with Air India. The consulting firm was hired by the airline in 2017 to formulate its long-term strategic business plan. The partnership focused on areas like cash-flow management, route networks, marketing strategies, and revamping its loyalty program.

Merger of Vistara and Air India
Merger impact

Watson Farley & Williams (WFW) had advised on the merger of Tata SIA Airlines Ltd (Vistara) with Air India.

The move created a single full-service airline working under the Air India brand, further strengthening its position in the market.

This came after the merger of low-cost carriers Air India Express and AIX Connect under one umbrella.

Air India's financial performance
Transformation journey

The consolidation of Tata-owned airlines is part of Air India's five-year transformation program, Vihaan.AI. The initiative aims to establish the Air India Group as a world-class aviation company.

On the financial side, Air India reported a reduced loss of ₹4,444 crore for FY2024, down 60% from ₹11,388 crore in FY23.

The airline's turnover also grew by 23.69% to ₹38,812 crore during this period.

Tata Sons chairman assures Air India employees
Assurance

In light of the recent Dreamliner crash, Tata Sons Chairman N Chandrasekaran assured employees at Air India's Gurugram headquarters.

He said, "I felt I had to be here and meet as many of you as possible."

Chandrasekaran also visited the crash site and expressed his grief over the incident.

He reassured those affected by the tragedy that they are part of the Air India family "now and always."