Air India Denies Airline Overhaul Talks With McKinsey After Ahmedabad Crash

Air India, the Tata Group-owned airline, has denied a report claiming it held talks with American consulting giant McKinsey & Co. regarding a transformation plan following the fatal crash in Ahmedabad.

A company spokesperson told Business Standard that the report is “false,” adding, “There have been no explorative discussions with McKinsey & Co. on any aspect of transformation for Air India. Air India is currently focused on relief efforts following the incident in Ahmedabad last week.”

McKinsey also called the report “inaccurate.”

“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,” a McKinsey spokesperson told BS.

The report had earlier said that Tata Sons Chairman N Chandrasekaran met with McKinsey senior partner Vivek Pandit in Mumbai over the weekend to devise a revival plan for Air India. Citing a person with direct knowledge of the matter, the report claimed the meeting was in the wake of a tragic crash involving a London-bound Air India Boeing Dreamliner, which killed 241 people on board, including crew members and the pilot. There were also fatalities reported on the ground at a medical college hostel, where the aircraft had crashed.

The report also noted that Chandrasekaran held internal consultations with key Tata Group figures, including Noel Tata, chairman of Tata Trusts and a director on the Tata Sons board. Discussions focused on crisis management strategies, including compensation packages and support mechanisms for the victims' families.

The disaster—one of the deadliest in India’s aviation history—has intensified pressure on the Tata Group’s ongoing efforts to revive the former state-owned airline, which it acquired in 2022.

Tata’s Transformation Plans for Air India

Soon after acquiring the airline, Tata Group launched an ambitious five-year revival plan called Vihaan.AI, aimed at transforming Air India into a world-class global carrier. As part of this transformation, the company placed massive orders for about 570 new aircraft, invested $400 million in a cabin refurbishment programme, consolidated Vistara, AirAsia India, and Air India Express under a unified brand, and reportedly hired over 9,000 new employees to improve customer experience.

Tata also invested $200 million in upgrading IT systems related to operations, ticketing, and maintenance. These efforts led to notable improvements—Air India's domestic market share rose to 27.2%, losses dropped significantly, and revenues grew by over 23% in FY24.

However, while the orders included 250 aircraft from Airbus (A350s, A320neos, A321neos), 220 from Boeing (737 MAX, 787 Dreamliners, 777X), and an additional 100 Airbus jets in 2024, only a fraction has been delivered as of June 2025. Deliveries out of this so far include 6 Airbus A350-900s, 11 leased Boeing 777s, and 25 leased Airbus A320s.