The Tata Group is thinking about making big changes to improve Air India. A senior Tata official recently met with a top partner from the global consulting firm McKinsey & Company in Mumbai. They reportedly discussed a revival plan to help Air India recover from its current crisis.
This meeting happened shortly after a serious crash involving an Air India Boeing Dreamliner. The plane, which was flying from Ahmedabad to London, crashed just after takeoff. Sadly, 241 people, including passengers and crew, lost their lives. Only one person survived the accident. This tragic event has increased pressure on the Tata Group to act fast and improve the airline.
McKinsey & Company said it is not currently working with the Tata Group on this project, but they did not fully deny the possibility of future involvement. A Tata Group official chose not to comment.
This is not the first time McKinsey has worked with Air India. In 2017, the airline hired McKinsey to help create a long-term business plan. That plan focused on improving cash flow, flight routes, marketing, and customer loyalty programs.
Air India has already made several big changes. It recently merged its full-service airline Vistara (Tata SIA Airlines Ltd) into Air India. Earlier, it had also merged its low-cost airlines—Air India Express and AIX Connect. These moves made Air India the biggest international airline from India and the second biggest for domestic travel. India is now the third-largest aviation market in the world.
Air India was founded in 1932 and is one of the oldest airlines in the country. The Tata Group bought it from the Indian government in 2022 and began a five-year transformation plan called Vihaan.AI. The goal is to make Air India a world-class airline again.
In the financial year 2024, Air India reduced its losses to ₹4,444 crore, which is 60% less than the previous year. Its income also rose by over 23% to ₹38,812 crore.
Tata Sons Chairman N Chandrasekaran visited the crash site and met with Air India staff. He said it was one of the hardest moments in his career. He promised long-term support to the victims’ families and encouraged employees to stay strong and determined despite the challenges.
