Tata in talks with global consulting giant McKinsey for Air India overhaul

Air India denies talks on transformation of airline

This story has been updated with Air India and McKinsey's replies:  The Tata Group is in talks with global consulting giant McKinsey & Co to spearhead a sweeping transformation of Air India, as the airline grapples with its gravest crisis following last week’s fatal crash in Ahmedabad, people familiar with the matter said.

 

Tata Sons chairman N Chandrasekaran met with Vivek Pandit, a senior partner at McKinsey, in Mumbai over the weekend to chart a revival strategy for the airline, according to a person with direct knowledge. The meeting comes days after a London-bound Boeing Dreamliner operated by Air India crashed shortly after takeoff, killing 241 on board.

 

The accident, which marks one of the deadliest in India’s aviation history, has placed intense scrutiny on the Tata Group’s turnaround plans for the former state-run carrier, which it acquired from the Indian government in 2022.

 

Chandrasekaran also held internal consultations with key Tata Group leaders, including Noel Tata, chairman of Tata Trusts and a director on the board of Tata Sons, the person said. The discussions focused on crisis management measures, including compensation and support for the victims’ families.

 

Queries sent to Tata Sons remained unanswered.  

 

In a late evening response on Monday, the McKinsey spokesperson said: "While we do not comment on or publicly discuss details of any client work, it would be inaccurate to report that McKinsey is currently serving the Tata Group on a transformation project for Air India."

 

Air India denies report

 

On Tuesday, the Air India spokesperson denied the report. He said: ‘’The news report published is false and strongly denied. There have been no explorative discussions with McKinsey & Co on any aspect of transformation for Air India.’’ He added that Air India is currently focussed on the relief efforts following the incident in Ahmedabad last week.  Separately, McKinsey and Company said in a statement, "While we do not comment on or publicly discuss details of any client work, it would be inaccurate to report that McKinsey is currently serving the Tata Group on a transformation project for Air India."