Air India has revealed that they are to cut 15% of their international flights following both the Boeing 787 crash and tensions in the Middle East.
But what are the implications of this?
The airline is facing a lot of external pressures at present, which has forced them into this decision.
It is understood that these cuts will start from June 20th and continue on until mid-July as a precaution.
Plans for International Flight Cuts…
Air India has revealed that following checks needed on aircraft following the Boeing 787 crash as well as tensions in the Middle East, they have been forced to cancel 83 flights over the last six days.
Furthermore, it is understood that 15% of the international flights will also be axed temporarily.
Via a press release, the airline confirmed the following, as per ABC News:
“Given the compounding circumstances that Air India is facing, to ensure stability of our operations, better efficiency and to minimise inconvenience to passengers, Air India has decided to reduce its international services on widebody aircraft by 15% for the next few weeks”.
Air India also confirmed that following the cancellation of international flights, passengers are eligible to receive a full refund or to reschedule at no charge.
The Middle East tensions come following the ongoing exchanges between Israel and Iran.
Both of these countries that Air India would normally fly through on their international flights into Europe and beyond.
As tensions continue to ramp up, and with potential American involvement on the cards too, it is going to make international flights just that more tricky.
A report from Travel and Tour World highlights that over 500 flight cancellations and delays have happened at major Middle East airports too.
Aircraft Being Checked Following The Air India Boeing 787 Crash…
Air India have also confirmed that 26 out of their 33 Boeing 787 Dreamliners have completed inspections and have been returned to service following the crash.
AI171, enroute to London Gatwick from Ahmedabad, crashed moments after departure.
241 passengers and crew members, plus five medical students who were inside a medical college, were involved in the accident.
There was only one survivor onboard the aircraft.
At the present moment, the investigation is still in the early stages.
Moreover, it is expected that the preliminary report will be released within three months, pending any delays.
This accident has taken the world by storm, and has encouraged a lot of misinformation in recent days.
This tragedy, one of India’s deadliest aviation disasters in decades, has sent shockwaves through the nation’s booming aviation sector.
The Ahmedabad crash has shaken passenger confidence. Social media posts reveal widespread fear, with some travelers hesitant to fly, especially with Air India.
Political figures like Sanjay Raut have echoed these sentiments, noting that “people are afraid of traveling by air now.”
This dip in trust could lead to a temporary drop in flight bookings, hitting Air India’s domestic and international routes hardest.
As the third-largest and fastest-growing aviation market globally, India now faces critical questions about safety, trust, and growth.
Middle East Tensions & The Accident: Will This Affect The Transformation Strategy?
The timing for Air India with the Boeing 787 Crash and Middle East tensions couldn’t have come at a worse time.
For the carrier, this could be a pivotal moment.
Over the last 12-18 months, the airline has been in the process of a massive transformation strategy.
This involved ordering close to 1,000 aircraft, and planning worldwide expansion.
Both of these events may hinder or delay that transformation programme for two reasons.
Firstly, the efforts from the airline need to be heavily focused on supporting investigators and loved ones from the crash on AI171.
Secondly, it is also unclear how long the tensions in the Middle East between Israel and Iran will continue.
If this turns into a full-scale war, this would also impact major international carriers like Air India majorly.
Europe and the UK are massive markets for the Indian carrier, and this is something that could potentially be at risk as a result.
If anything comes out further about the 787 crash as well, then this will impact Air India majorly too.
Conversely, it is estimated that the insurance claim for the crash is valued at $475 million.
Air India are trying to recover $125 million for the hull loss, with another $350 million for loss of life for passengers.
Whilst the airline is covered, it will take a while to recuperate costs.
And for the airline, that is $475 million that they could be using towards the transformation program.
So, what will come next for the airline’s transformation program is unclear at this present moment.
Overall: How Much Damage Will The Boeing 787 Crash & Middle East Tensions Inflict on Air India?
It is clear in this instance that Air India is more than likely in for a turbulent period, given the Boeing 787 Crash last week and ongoing Middle East tensions.
What will be interesting is how the airline is able to pivot themselves out of what could potentially see them in a financial black hole.
They are things that they have to get under control. And fast.
Costs like this can place a lot of damage on an airline.
However, with a massive conglomerate like TATA Group owning the airline, they should survive this.
On top of this, the fallout will no doubt continue for many years to come off the back of this crash.
Either way though, the extent of this will probably become more known when the preliminary report comes out.
As for the Middle East, it is a different story altogether.
With Israel and Iran trading blows, and no sign of stopping, it is also dangerous for the airline.
If they can get to the negotiating table, which seems unlikely, then it will benefit Air India.
But one thing is for sure at this present moment.
Things are very volatile – and show no signs of slowing down, that’s for sure.