From Unscheduled Landing Charges To Fuel Dumping, How Bomb Hoaxes Are Leading To Major Financial Repercussions

For the fifth consecutive day, bomb threats against Indian airlines persisted, leading to the diversion of a Vistara flight bound for London from Delhi to Frankfurt on Friday. A spokesperson for Vistara confirmed that the flight landed safely in Frankfurt, where mandatory checks were being carried out.

“Vistara flight UK17 operating from Delhi to London on October 18, 2024, received a security threat on social media. In line with the protocol, all relevant authorities were immediately informed and as a precautionary measure, the pilots decided to divert the flight to Frankfurt,” the spokesperson explained.

Frequent Bomb Hoaxes Leading To Losses

In the past few days, nearly 40 flights operated by Indian carriers have been subjected to bomb threats, which ultimately turned out to be hoaxes. These hoaxes have had significant financial consequences, with airline officials estimating the losses to be in the crores of rupees.

One such incident occurred on October 14, when a Boeing 777 flying from Mumbai to New York’s JFK airport was diverted to Delhi following a bomb threat received shortly after departure.

The plane, carrying 200 passengers and approximately 130 tonnes of jet fuel, had to dump over 100 tonnes of fuel to land safely—an expensive procedure that cost the airline ₹1 crore ($120,000) in wasted fuel alone, as reported by a publication.

How Does The Economy Gets Affected With Multiple Bomb Hoaxes?

The Financial Toll

The financial toll extends beyond fuel dumping. The overall costs, including unscheduled landing fees, accommodations for passengers, grounding of the aircraft, and replacement of crew, are expected to surpass ₹3 crore ($360,000), according to the report.

A particularly serious case occurred on October 15, when another Air India Boeing 777, traveling from Delhi to Chicago, was diverted to the remote Canadian town of Iqaluit due to a bomb threat. The aircraft, carrying over 200 passengers, remained grounded for three and a half days before completing its journey to Chicago. The airline had to charter a Canadian Air Force plane to transport the stranded passengers, further escalating the costs.

The daily rental fee for Boeing 777s ranges between $17,000 and $20,000, adding to the financial burden faced by the airline. The total cost of this incident is expected to exceed ₹15-20 crore ($1.8-2.4 million).

Disruptions And Additional Expenses

Adding to the financial strain, airlines incur significant costs even when flights are not diverted. Pilots are often instructed to hold or hover near their destinations, consuming large amounts of fuel while awaiting clearance. “A B777 burns 7-8 tonnes of fuel every hour and an A320 burns 2.5 tonnes. At ₹1 lakh per tonne, two hours of hovering costs several crores,” a pilot explained.

In some instances, extended flight times mean the crew can no longer operate the subsequent flight, resulting in further disruptions and additional expenses.

A senior airline official referred to these hoaxes as “financial terrorism” and called for strict action. “This is the peak festive rush season and we don’t want to create a scare among travellers,” the official told TOI, emphasizing that airlines are taking all threats seriously, whether credible or not.

The threat levels are categorized as red (very serious), amber (serious), or green (likely a hoax) based on an assessment matrix. Despite this, airlines tend to err on the side of caution, as “it is better to be safe… than sorry.”

When immediate landings are required, fuel is jettisoned at high altitudes to ensure safety. “Fuel jettisoned from over 5,000 feet will vaporize,” a pilot explained, noting that in Delhi, fuel is typically dumped south of the city, while in Mumbai, it is released over the sea.

Intangible Costs

While the financial impact of these disruptions is immense, the intangible costs are also significant. Passengers, many of whom are on important journeys, face stress, anxiety, and unexpected delays. For some, the delays may result in missing a job interview, a medical appointment, or even a family emergency. Although these inconveniences are harder to quantify, they represent real costs borne by passengers who are left with no option but to wait.

Ultimately, false bomb threats trigger a chain of events that go far beyond a temporary disruption. While safety remains the top priority for airlines, these incidents come with a steep price that extends beyond their control.

Tourism and Hospitality Sector Impact

Reduced Traveler Confidence: Frequent bomb hoaxes can make tourists hesitant to travel, leading to a decline in both domestic and international tourism. This directly affects hotels, restaurants, and tourist attractions, reducing revenues.

Disruption of Travel Plans: Delays and diversions result in missed connections, events, or holidays, leaving a negative impact on the traveler experience. Tourism businesses in cities affected by diverted flights may also lose out on business.

Increased Security and Operational Costs

Governments and airports may need to increase security measures to deal with recurring hoaxes, hiring more personnel, and investing in equipment and technology. These costs are usually passed on to businesses and taxpayers. Each hoax requires law enforcement and emergency response units to investigate and respond. This strains public resources, diverting them from other important duties and increasing taxpayer burdens.

Insurance Premiums

Higher Costs for Airlines: Bomb threats, even hoaxes, increase the perceived risk for insurers. As a result, airlines may face higher insurance premiums, further adding to operational costs, which could ultimately be passed on to passengers in the form of higher ticket prices.

Disruption to Global Trade and Supply Chains

Cargo Delays: Many passenger airlines also carry cargo, so bomb hoaxes and diversions can delay shipments. This disrupts supply chains, especially for time-sensitive goods, leading to financial losses for businesses relying on air freight.
International Trade: If threats are frequent, certain routes may become unreliable, affecting international trade partners who rely on timely transport.

Will Government Consider Changing Amendments?

In response to the surge in hoax bomb threats, Civil Aviation Minister K Rammohan Naidu has suggested that the ministry is working on changes to civil aviation regulations to impose strict penalties on those responsible.

“We are taking things seriously. We will take action,” Naidu said, adding that the ministry is reviewing international regulations to address such threats effectively. The ministry is also exploring the possibility of placing those responsible for bomb threats on a no-fly list and considering legislative changes if necessary.

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