• Source:JND
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The Indian Association of Tour Operators (IATO) President Ravi Gosain stated on Friday that following the Boeing 787-8 Dreamliner crash last week, Air India flight reservations have decreased by about 20% on both domestic and international routes, while average fares have decreased by 8–15% each.

An Air India spokesperson did not reply to a request for remarks from the carrier.

On June 12, an Air India aircraft destined for London, AI-171, carrying 242 passengers and crew members, crashed in Ahmedabad. Shortly after takeoff, the jet crashed into a medical facility in the Meghaninagar area of the city, killing 241 on board and over 29 people on the ground.

"Following the unfortunate incident involving Air India, we have observed a temporary decline in bookings, particularly on international sectors. 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 decline domestically in the immediate aftermath. However, this appears to be a short-term sentiment-driven reaction, as confidence typically stabilizes over time," Gosain told PTI.

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The president of the IATO said that rates for important Air India flights had been moderately adjusted.

"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 mix of promotional strategies and yield correction due to lowered demand," Gosain said.

When asked if there had been any cancellations by passengers for Air India flights booked through tour operators, the IATO president stated, "Yes, we have seen a noticeable increase in cancellations, particularly from corporate and high-end leisure travellers who prefer to switch to alternative carriers."

He said that over the previous week, cancellations had increased by 8–10% domestically and 15–18% globally. However, because no systemic safety concern has been identified and regulators including the DGCA have reaffirmed Air India's compliance with international safety requirements, this tendency could normalise in the days ahead.

Rajiv Mehra, the general secretary of the Federation of Associations in Indian Tourism & Hospitality (FAITH), also revealed that reservations for Air India flights have decreased by up to 20%, while fares in some areas with fierce competition from other airlines have decreased by roughly 10%.