Air India cancels 8 flights; bookings decline by up to 20%

Mumbai: Air India on Friday cancelled eight flights, including four on international routes, due to operational reasons even as the impact of the Ahmedabad plane crash last week is becoming manifest on its overall bookings dropping nearly 20 per cent.

A London-bound Air India flight, AI-171 carrying 242 passengers and crew members crashed in Ahmedabad on June 12. All but one passenger onboard the plane died along with nearly 29 on the ground when the aircraft crashed on a medical college complex shortly after the take-off.

In a statement on Friday, Air India announced cancellation of several flights -- Dubai-Chennai (AI906), Delhi-Melbourne (AI308), Melbourne-“Delhi (AI309) and Dubai-Hyderabad (AI2204).

On domestic routes, Pune-“Delhi (AI874), Ahmedabad-Delhi (AI456), Hyderabad-Mumbai (AI-2872) and Chennai-Mumbai (AI571) flights were cancelled.

The Delhi-Pune flight was cancelled after the airline, on its arrival from Delhi, detected that it had a bird hit. Consequently, it was grounded for extensive inspection.

The airline also said it made all arrangements, including accommodation for the stranded passengers.

Refunds on cancellation or complimentary rescheduling were also offered to passengers, the airline said.

According to the tour operators body, Indian Association of Tour Operators (IATO), bookings for Air India flights have declined by around 20 per cent on domestic as well as international routes while the average fares have dropped by 8-15 per cent in the aftermath of the Boeing 787-8 Dreamliner crash last week.

Federation of Associations in Indian Tourism & Hospitality (FAITH) General Secretary Rajiv Mehra also said that an up to 20 per cent decline in bookings has been observed 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.

An Air India spokesperson did not respond to a query seeking comments from the airline on decline in bookings.

"Following the unfortunate incident involving Air India, we have observed a temporary decline in bookings, particularly on international sectors," IATO president Ravi Gosain told PTI.

"While the exact percentage varies by route, our estimates indicate a dip of around 18-22 per cent on international bookings and a 10-12 per cent fall domestically in the immediate aftermath. However, this appears to be a short-term sentiment-driven reaction, as confidence typically stabilises over time," Gosain said.

Noting that there has been a moderate adjustment in fares across key Air India routes, he said, "On an average, ticket prices have reduced by 8-12 per cent on domestic sectors where the airline competes directly with low cost carriers like IndiGo and Akasa." On international routes, especially to Europe and Southeast Asia, fares have seen a drop of 10-“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.

Campbell Wilson, CEO and Managing Director of the Tata-owned Air India, meanwhile in a message said that around 500 employees of Air India and 17 from other Tata companies are in Ahmedabad to help the families of passengers, crew and others who lost their lives.

He further said the airline will progressively restore the international flight schedule, which has been reduced by 15 per cent till July 15 on account of additional pre-flight checks of its wide-body fleet and other geopolitical factors.

Wilson also clarified that Air India had senior-level representation at the final rites, of the 12-crew members who lost their lives in the crash.

The clarification came amid allegations on social media platforms that there were no Tata Group board member present at the funeral of the crew members.

On the on-going investigation, Campbell said that "there are many theories but, as the accident is now under official investigation by the AAIB, it is not appropriate for us to comment or speculate."

"We are providing all information requested by the AAIB and are cooperating completely," he said, adding, "The final report can take many months, though the AAIB may choose to issue interim updates or reports."