While airlines bear the costs, here’s what they can do to mitigate risks

In the last 30 days, airlines in India have received an unusually high number of bomb threats, all of which turned out to be hoaxes. During this period, at least 20 flights were bombed with bomb threats, particularly in a concentrated wave that began around mid-October. This means that flights every two days were targeted by these bomb threats.

Aside from the panic and resulting trauma it causes among passengers, the airline’s financial loss is enormous. In India, the financial impact of a bomb threat can be significant. Given the added complexity of bomb threat management in India, including heightened security protocols and coordination with multiple agencies, the financial burden can increase even further when delays extend into hours or days, as was the case with Air India.

Also read: Delhi airport bomb scare: 13-year-old boy arrested, sent email ‘just for fun’

When a bomb threat results in flight diversions, as recently happened with an Air India flight from Mumbai to New York that was diverted to Delhi, the costs add up from multiple sources. Although exact figures specific to India are rarely disclosed, global estimates suggest that such incidents can cost airlines anywhere from ₹25 lakh for short-haul flights to around ₹4 crore per incident, depending on factors such as flight diversion, passenger compensation, security measures, etc. and operational disruptions . Such financial losses are likely to burden airlines and be reported under “extraordinary items” in the income statement. Extraordinary items refer to income or expenses arising from events or transactions that are unusual and infrequent in nature.

Some of the biggest expenses for airlines in the event of a bombing disaster include emergency landing fees, refueling, security checks, passenger rebooking, hotel accommodations and compensation for delays. In addition, operational disruptions lead to domino effects that affect the comfort of passengers and subsequent flights.

Costs incurred by airlines due to bomb scares

Let’s examine the various costs incurred in the event of a bombing.

1. Direct costs:

1. Emergency landing fees:

• If the flight is diverted, airports will charge fees for unscheduled landings.
• Additional costs include taxiing, parking and towing.

2. Fuel disposal or additional fuel costs:

• The aircraft may need to dump fuel to land safely or refuel after a diversion.

3. Security and evacuation costs:

• Checking passengers, baggage and aircraft.
• Deployment of bomb squads and emergency forces.

4. Ban on flights:

• A thorough inspection may require a flight ban for several hours or even days.

5. Compensation to passengers:

• Airlines may need to arrange meals, hotels or rebookings for delayed or rerouted passengers.
• Some passengers may request additional compensation under EU or other aviation regulations.

Also read: Full emergency at Thiruvananthapuram airport after bomb threat on AI flight

2. Indirect costs:

1. Loss of Passenger Trust and Bookings:

• A bomb scare could deter passengers from flying with the airline, especially if it attracts significant media attention.

2. Malfunction:

• Cancellations or delays may disrupt the flight schedule and affect future flights.
• This ripple effect may require chartering other aircraft to compensate for disrupted flights.

3. Fines:

• In some cases, airlines face penalties from aviation authorities for inadequate safety protocols.

4. Legal costs:

• Airlines could face lawsuits if the panic was due to negligence (e.g. poor baggage screening).

5. Insurance premiums:

• Future premiums may increase if the airline frequently experiences bomb scares or handles them incorrectly.

Also read: 13 in 3 days: Vistara flight Frankfurt-Mumbai makes emergency landing after bomb threat

Examples of cost estimates:

• In 2020, the Ryanair bomb scare in Greece resulted in a diversion and reportedly cost over €100,000 in rebookings and operational changes.
• In 2015, the diversion of a Turkish Airlines flight to Halifax resulted in hundreds of thousands of dollars in direct and indirect costs.
• Industry estimates suggest that even a minor disruption caused by a false alarm can cost airlines between $50,000 and $500,000, depending on the circumstances.

This variability reflects the varying extent of incidents, e.g. B. whether it concerns fuel losses, long delays and the need for security teams or the rerouting of flights.

Also read: 12 bomb threats against airlines in 48 hours paralyze operations; “X” handle on the test bench

Airlines are increasingly incorporating potential costs from bomb threats into their operating budgets. This includes anticipating expenses for crew overtime, passenger accommodation and logistical challenges arising from flight delays. While many costs associated with bomb threats are not covered by insurance, airlines are exploring risk management strategies that could limit financial losses in the long term.

Specific and non-specific bomb threats

Based on the information in the threat notification, airlines distinguish between specific and non-specific bomb threats.

Specific