Air India plane crash in Ahmedabad: Air India is witnessing a significant drop in demand across its domestic and international routes after the crash of its Boeing 787-8 Dreamliner last week in Ahmedabad, reports Times of India.
According to Ravi Gosain, President of the Indian Association of Tour Operators (IATO), bookings have declined by around 20% on both domestic and international flights. Fares have also fallen between 8% and 15% across key routes as the airline attempts to entice reluctant travelers back onto its planes.
“Following the unfortunate incident involving Air India, we have observed a temporary decline in bookings,” Gosain said as per reports. “While the exact percentage varies by route, estimates indicate an 18–22% decrease in international bookings and a 10–12% dip domestically.”
Impact of passenger concerns and cancellations
Gosain noted that fares have dropped 8–12% on domestic routes where Air India competes directly with low-cost carriers like IndiGo and Akasa. On international routes to Europe and Southeast Asia, fares have been reduced by 10–15% due to a mix of promotional strategies and yield corrections to offset reduced demand.
Tour operators also report a rise in cancellations, especially among high-end leisure and corporate travelers who prefer to switch to alternative carriers. Cancellations are up by 15–18% internationally and 8–10% domestically. However, the impact is expected to be short-lived as regulators like DGCA reaffirm Air India’s compliance with international safety standards.
What the travel industry said?
Rajiv Mehra, General Secretary of the Federation of Associations in Indian Tourism & Hospitality (FAITH), observed a similar trend. “There has been up to a 20% decline in new bookings for Air India on both domestic and international routes. Fares too have become approximately 10% cheaper on competitive routes,” Mehra stated.
A senior executive at a prominent online travel agency noted that the crash, combined with ongoing technical glitches on Air India flights, has shaken public confidence. “Travellers are opting for alternative carriers,” the executive said on condition of anonymity.
Air India operational setbacks
The downturn in demand follows the crash of flight AI-171, which was carrying 242 people when it went down near Ahmedabad on June 12, killing all but one on board and 29 on the ground. Since the accident, Air India has reduced its international services on widebody aircraft by 15%. The airline cited geopolitical tensions in the Middle East, airspace restrictions across Europe and Asia, and heightened safety protocols for the disruptions.