Saturday, March 04, 2017

Air India appoints McKinsey to advise on business plan

New Delhi: Air India has appointed McKinsey as consultant to advise on firming up its long term strategic business plan. The consulting firm will give AI a detailed cash-flow based on the plan it prepares, which will focus on redrawing of network. It will also tell the national carrier how much global airlines of its size should be generating and advise on bridging the gap.

“McKinsey will also advise us on marketing strategies and help us bring our frequent flyer programme to global standards, “ said a senior AI official. The airline had shortlisted three firms -McKinsey Bain and EY -from a number of applicants on the basis of presentations made to the AI brass, following a tender inviting proposals issued last October.

The move to take a consultancy help in network planning comes at a time when the government has drawn up ambitious plan for AI. It has decided that AI, which currently has 118 planes, will almost double its fleet in next four years without burde ning the taxpayer-funded exchequer further. The airline will grow by leasing aircraft instead of purchasing them.
04/03/17 Saurabh Sinha/Economic Times