Following the deadliest air disaster in India’s recent aviation history, the Tata Group is reportedly in advanced talks with McKinsey & Company to lead a comprehensive overhaul of Air India. While McKinsey has denied an ongoing engagement, their long-standing relationship with the airline and recent high-level meetings suggest the groundwork for a sweeping transformation plan is quietly being laid.
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Just days after a London-bound Air India Boeing Dreamliner tragically crashed shortly after takeoff from Ahmedabad, claiming the lives of 241 passengers and crew, the Tata Group has accelerated plans for a strategic overhaul of the national carrier. Only one passenger survived, sending shockwaves across the country and the global aviation industry.
A senior Tata Sons executive met with a top McKinsey partner in Mumbai last week, sparking intense speculation about a renewed collaboration between the conglomerate and the global consulting firm. Though McKinsey issued a guarded denial, stating that reports of an active project were “inaccurate”, its decade-long relationship with Air India and the timing of the meeting have fueled belief that a new transformation mandate is imminent.
The crash has not only spotlighted Air India’s ongoing challenges with safety and operations but also underscored the urgency of the Tata Group’s mission to rescue and restore the airline’s global standing.
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Behind the Scenes: Merger Moves and the McKinsey Blueprint
McKinsey & Company’s association with Air India began in 2017, when the firm was roped in to develop a long-term strategic business plan that covered cash-flow optimization, marketing, route design, and loyalty programs. The new initiative, if finalized, is expected to build upon those earlier foundations.
In the past two years, the Tata Group has orchestrated a historic consolidation of its aviation assets, merging Tata SIA Airlines Ltd (Vistara) with Air India and combining its low-cost units Air India Express and AIX Connect. The result is India’s largest international carrier and second-largest domestic player, operating over 90 global destinations. Watson Farley & Williams (WFW), the UK-based law firm, advised on the legal structure of the mergers, which are part of Air India’s Vihaan.AI transformation roadmap, a five-year plan aiming to elevate the airline to global standards in safety, service, and profitability.
Despite continued turbulence, signs of progress have emerged. Air India slashed its net loss by nearly 60% in FY2024, reporting a ₹4,444 crore deficit compared to ₹11,388 crore the previous year. Revenues rose 23.7% to ₹38,812 crore, figures that Tata hopes to further improve through external expertise.
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A Grieving Workforce, A Determined Vision
Following the Dreamliner crash, Tata Sons Chairman N. Chandrasekaran addressed employees at Air India’s headquarters in Gurugram, delivering a heartfelt message. “I’ve seen many crises in my career, but nothing as heartbreaking as this,” he said. “We consider every person who lost someone in this tragedy as part of our family, now and always.” He acknowledged the emotional toll on employees, urging them to remain resilient amid scrutiny and sorrow.
The crash has intensified scrutiny of Air India’s safety protocols, training practices, and aircraft maintenance schedules, issues that the proposed McKinsey-led overhaul would likely place at the forefront of any reform agenda. With India poised to become the world’s third-largest aviation market, the future of Air India is inextricably linked to the country’s global economic narrative.
For now, both McKinsey and Tata remain tight-lipped. But insiders suggest a blueprint is quietly in the works, one that could define the next era of Indian aviation.
About the author – Prakriti Jha is a student at National Forensic Sciences University, Gandhinagar, currently pursuing B.Sc. LL.B (Hons.) with a keen interest in the intersection of law and data science. She is passionate about exploring how legal frameworks adapt to the evolving challenges of technology and justice.