National carrier Air India has shortlisted three top consulting companies – Bain and Co., McKinsey and Co., and EY – to beef up its business strategy, rendering to Ashwani Lohani, Chairman and Managing Director of the state-run airline, stated the firms had been shortlisted based on some presentations that had been made after Air India floated a tender inviting proposals for the project.
“They will help us in cultivating our network, cash flow and other things,” Lohani told.
A person privy to the growth was quoted as proverb that the financial bids are yet to be opened for the contracts that will primarily be for three to six months and may be tracked by two more phases. The person said the designated firm’s mandate would be to express the airline what it urgently needs to do, apart from seeing into product development, market share, brand management, competitiveness, recurrent flier programme and the entire business model, Air India last hired consultants for a main project, when Accenture Plc performed a union between Air India and Indian Airlines.
The national carrier, which has the major fleet in the country with 140 planes, has 14.6 percent of market segment in the domestic passenger market. Under a financial reform plan, Air India was scheduled to receive Rs 30,231 crore equity infusion, 75 percent of which it has expected so far. The airline’s losses have condensed of late, with Air India reports a cost of about Rs3587cr, from a loss of Rs 5,859 cr.