Bomb threats impact domestic air travel sentiment in India

Airline bomb threats

Domestic air travel in India has faced significant turbulence in recent weeks, with daily passenger traffic falling about 20 percent in the last week of October, airlines and industry experts told Moneycontrol.

This decline follows a peak around the Dussehra festival, as travellers grow disenchanted with flights due to increased cancellations and delays caused by adverse weather, something that is expected, and a series of hoax bomb threat calls, a recent phenomenon that has thrown schedules out of gear.

Data from the Ministry of Civil Aviation and online travel agents indicate that while domestic air traffic reached a record single-day high of 484,263 passengers on October 14, it dropped to 422,969 passengers by October 30.

In the past three weeks, over 510 domestic and international flights have been disrupted due to hoax bomb threats, leading to delays, emergency landings and rising operational costs for airlines.

An executive from Air India noted that the hoax threats and severe weather have negatively affected consumer sentiment toward air travel. Despite the current decline, advance bookings for the end of the year remain robust and are expected to surpass last year’s levels.

"A combination of hoax bomb threats, bad weather—heavy rains seen in the southern states in India and cyclones in the western states—have hit consumer sentiment around air travel temporarily," the senior executive told Moneycontrol.

Due to the incessant rains in Bengaluru last week, one of the top routes for Indian travellers, over 20 flights were delayed. IndiGo flights from Delhi, Hyderabad and Chandigarh, as well as an Air India flight from Delhi, were diverted to Chennai.

India's largest domestic airline, IndiGo echoed similar sentiments during its post-earnings call on October 25. The airline anticipates a drop in air travel demand in the third quarter of the financial year, attributing this to high previous-year figures.

The airline’s management projected a single- to mid-single-digit decline in passenger revenue per available seat kilometre for Q3 compared to last year, highlighting the challenges posed by recent disruptions.

“Air travel is all about reducing time taken and efficient and quick travel,” a senior executive from IndiGo said. “Due to flight delays, emergency landings and diversions, we have seen a small rise in cancellations.”

The executive added that while consumer sentiment is likely to remain subdued until the threats are contained, travellers are expected to return to flying as soon as the situation stabilises.

When bomb threats are reported, airlines immediately notify security agencies and redirect affected aircraft to isolation bays for thorough inspections. A senior government official explained that the process of evacuating passengers and conducting security checks can take from one hour to 90 minutes, significantly impacting flight schedules.

Experts in the aviation industry noted that emergency landings following bomb threats create a significant financial burden for airlines. Costs associated with landing fees, fuel dumping, extensive security screenings and passenger compensation can escalate quickly.

“All of this has significant cost and network implications. Every diverted or delayed flight incurs substantial expenses, as grounded aircraft become money-losing assets. Delays lead to cancellations, and schedules are thrown off balance,” Sidharath Kapur, an independent aviation expert said.

Similarly, Atanu Guru, a strategy and aviation expert, said that harassed passengers wait without a clue of what turn their travel plan could take.

"Evacuating passengers at the earliest is not easy. It could result in minor injuries if extra precaution is not exercised. The entire baggage is offloaded and screened. It takes a lot of time," Guru said, adding, "Besides being time consuming, the process is expensive and eats into the bottom line of the airline. In some cases, it might affect the sustainability of the airline."

According to the Air India executive, such incidents not only result in immediate costs but also pose risks to the airline's reputation and passenger trust.

IndiGo's management indicated that bomb threats affecting flights on the ground could initially cost airlines several lakhs of rupees, escalating to crores as disruptions ripple through schedules and lead to passenger rescheduling and refund requests. The Times of India reported that the total cost of one hoax bomb threat can exceed Rs 3 crore.

While all reported threats since October 14 have turned out to be hoaxes, tensions remain high due to a political standoff between India and Canada over separatist activities. Last month's bomb threats coincided with the death anniversary of Talwinder Singh Parmar, the mastermind behind the 1985 Air India Flight 182 bombing.

(With inputs from Maryam Farooqui.)