The board of Tata Sons was briefed on Air India’s turnaround plans last Tuesday, with inputs from global consulting firm McKinsey & Company, according to persons familiar with the matter.
The airline is undergoing a sweeping transformation as it seeks to pare losses of Rs 26,800 crore reported in FY26. The board was informed that Air India may continue to remain loss-making over the next three years, with the Iran conflict, elevated fuel prices, delays in fleet renewal and the cabin retrofit programme weighing on operations.
A person aware of the developments said McKinsey is assisting the Tata Group airline in improving operational capabilities and reducing losses. Nearly four years after its acquisition in 2022 under the government’s privatisation programme, a sustained turnaround has remained elusive, underlining the need for external expertise, the person added.
McKinsey declined to comment on the mandate, while an email sent to Tata Sons and Air India did not elicit a response.
The airline is planning to unlock new revenue opportunities and improve operational efficiencies while strengthening customer support, enhancing business planning and minimising disruptions. It also plans to scale productivity across the organisation by reducing manual work and deploying reusable AI agents across functions, according to the turnaround plan. The initiative includes building a high-performance digital team in India to drive the transformation.
28/05/2026 Dev Chatterjee/Financial Express
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