Crash Causes Dramatic Drop in Bookings Following the June 12 tragedy of the Air India Boeing 787-8 Dreamliner crash in Ahmedabad, which involved a London-bound flight AI-171, the aircraft, carrying 242 passengers and crew, crashed shortly after takeoff, striking a medical complex in the Meghani Nagar area of Ahmedabad. Nearly all onboard perished, along with 29 people on the ground. The incident has rattled passenger confidence and caused a notable shift in travel choices, with bookings falling by about 20% overall, according to Ravi Gosain, president of the Indian Association of Tour Operators (IATO). “There has been a sharp yet temporary decline in bookings, particularly for international travel. Based on current estimates, international bookings are down by 18 to 22%, while domestic routes have seen a 10 to 12% drop,” he noted. This decline appears to be driven largely by public sentiment and may stabilize over time.
Fares Slashed Amid Drop in Demand
As a response to the reduced demand, Air India has made moderate adjustments to its pricing. Ticket prices have dropped by 8 to 12% on domestic routes, especially where competition from low-cost carriers like IndiGo and Akasa Air is strong. In international sectors, particularly Europe and Southeast Asia, fares have declined by 10 to 15%. Gosain attributes the price cuts to a mix of promotional efforts and yield correction aimed at reviving demand.
Cancellations have also increased as a result of the tragedy, especially from business and high-end leisure passengers. “We’ve noticed a considerable spike in cancellations between 8 and 10% domestically and between 15 and 18% internationally,” Gosain continued. As they wait for greater clarity and safety guarantees, many passengers are choosing to use other carriers.
Authorities Assure, Industry Reacts
Rajiv Mehra, general secretary of the Federation of Associations in Indian Tourism and Hospitality (FAITH), had similar views. “We’ve noticed a 15–20% drop in new reservations for Air India flights, both domestically and internationally. Fares have been reduced by roughly 10% on certain crowded routes. Mehra emphasized the importance of rigorous aircraft maintenance across the airline industry in order to restore passenger trust.
Aviation regulators like the DGCA have confirmed that Air India complies with international safety standards, despite the airline’s lack of an official statement. Industry experts anticipate a comeback when trust is restored and think the present decline in reservations and fares is only temporary.
As Air India works through this challenging time, the major priorities are still safety, open communication, and restoring passenger trust.
