Flight crash: Air India bookings drop 20 per cent; fares cheaper
IATO president said that this appears to be a short-term sentiment-driven reaction
Air India’s bookings have taken a hit after the deadly June 12 crash, recording a decline of around 20 per cent both on domestic and international routes. Fares also decreased by 8 to 15 per cent following the crash of the Boeing 787-8 Dreamliner, said Indian Association of Tour Operators (IATO) president Ravi Gosain on Friday (June 20).
Dip in domestic, international bookings
Terming the decline “temporary”, Gosain said that, as per IATO’s estimates, Air India’s international bookings have dipped by 18 to 22 per cent while domestic bookings have gone down 10 to 12 per cent in the “immoderate aftermath” of the crash.
However, this appears to be a short-term sentiment-driven reaction, as confidence typically stabilises over time," Gosain told PTI.
As for the dip in ticket prices, Gosain said that on domestic routes they have dipped by 8 to 12 per cent, pointing out that on domestic routes Air India is in direct competition with budget carriers like IndiGo and Akasa.
Regarding international tours, especially to Europe and Southeast Asia, fares have gone down by 10 to 15 per cent, depending on route occupancy and competition. “These reductions are a mix of promotional strategies and yield correction due to lowered demand," Gosain said.
Cancellations increase
He also said that there has been a “noticeable rise in cancellations” by travellers who booked their tickets via tour operators, adding that the increase in cancellations was 15–18 per cent internationally and 8–10 per cent domestically over the past week.
Elaborating further, Gosain said such cancellations are coming particularly from “corporate and high-end leisure travellers” who prefer to switch to alternative carriers.
However, he said that the trends will normalise in the coming days since no “systemic safety issue” has come up in Air India’s aircraft and the DGCA has also reaffirmed Air India's compliance with international safety standards.
Similar statistics were provided by the Federation of Associations in Indian Tourism & Hospitality (FAITH) general secretary Rajiv Mehra who said there has been up to 20 per cent decline in bookings for Air India flights while the fares have turned cheaper by about 10 per cent on certain sectors where there is high competition with other carriers.
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Eight Air India flights cancelled
Meanwhile, Air India cancelled eight flights, including four on international routes, citing enhanced maintenance and operational reasons. The airline further stated that its ground teams were making alternative arrangements for the passengers to ensure that they reached their destination in due time.
The cancelled international flights are AI906 from Dubai to Chennai, AI308 from Delhi to Melbourne, AI309 from Melbourne to Delhi, and AI2204 from Dubai to Hyderabad, reported PTI.
As for the domestic flights AI874 from Pune to Delhi, AI456 from Ahmedabad to Delhi, AI-2872 from Hyderabad to Mumbai, and AI571 from Chennai to Mumbai have been cancelled.
According to media reports, an Indigo flight heading to Madurai returned to Chennai after developing a mid-air snag on Friday. The flight carrying 68 passengers landed safely.
(With agency inputs)