Air India bookings plunge 20% after plane crash in Ahmedabad
What's the story
Air India's flight bookings have taken a major hit, plummeting by around 20% on domestic and international routes.
The sharp decline comes after the tragic crash of a Boeing 787-8 Dreamliner in Ahmedabad on June 12.
The incident has also led to a spike in cancellations, especially among corporate and premium leisure travelers who are now opting for other airlines due to concerns over aircraft safety standards.
Fare adjustment
Average fares drop by 8-15%
As a result of the decline in bookings following the crash, average fares have dropped by 8-15%.
The fare adjustments are due to a combination of promotional strategies and yield correction in response to lowered demand, according to Indian Association of Tour Operators (IATO) President Ravi Gosain.
On average, ticket prices have reduced by a certain percentage on specific routes.
Safety assurance
Trend is likely to normalize in coming days
Gosain said there has been a 15-18% increase in cancellations on international routes and an 8-10% rise domestically over the past week.
However, this trend could normalize in the coming days.
Gosain noted that no systemic safety issue has been reported, and authorities like the Directorate General of Civil Aviation (DGCA) have confirmed Air India's compliance with international safety standards.
This assurance could help restore passenger confidence over time.