Malaysia Jet Crash Shakes Industry

The travel industry found itself once again in the crosshairs of geopolitical strife this week.

On Thursday, travel agents learned along with the rest of the world that a Malaysia Airlines jet had exploded and crashed in eastern Ukraine, killing all 298 people onboard.

By day’s end it was confirmed that the Boeing 777 had been struck down by an anti-aircraft missile, launched from an area of Ukraine caught up in a battle involving pro-Russian separatists.

It was unclear who was responsible for the strike or even whether the commercial airliner was the intended target of the surface-to-air missile.

The tragedy is not without precedent; Ukraine accidentally shot down a Russian airliner in 2001 during military exercises, leading to deaths of 78 onboard, and Russia famously shot down a Korean Air Lines flight from New York to Seoul over Ukraine in 1983, leading to 269 deaths.

Limited impact?
The catastrophic event occurred in an area of the world that is off-the-beaten path for most travelers. Apart from the rerouting of commercial aircraft to avoid Ukraine airspace, the incident’s immediate impact on travel is likely minimal.

Worldwide air delays were average on the day of the strike, according to FlightAware, while flight trajectories were shifted to avoid Ukrainian airspace.

The FAA banned American commercial aircraft from entering Crimean and Black Sea-adjacent airspace in early April and restricted aircraft from a wider swath of airspace late Thursday.

Several airlines issued statements indicating they would now avoid Ukraine altogether. “As a precautionary measure KLM avoids flying over the concerned territory,” said a representative of KLM. 

Most cruise lines had already revised their Baltic Sea itineraries to avoid the troubled area.

Viking, for instance, recently cancelled all its Ukraine sailings for the rest of the year, after initially adopting a patient approach toward the crisis. Oceania, Windstar, MSC Cruises, Azamara Club Cruises and Regent Seven Seas Cruises substituted port calls earlier this year.

The relatively limited impact on travel of this week’s events doesn’t lessen the emotional impact. Anytime a major calamity affects travelers, be it a terrorist strike or the sinking of a cruise ship due to a captain’s error, the travel industry and its customers are shaken.

Israel too
Meanwhile, the intensifying conflict between Israel and Gaza also threatens to erode travel industry optimism.

On Thursday, the Israel Ministry of Tourism sought to reassure the industry. In its monthly newsletter, the ministry reported that “American tourism to Israel is still in full swing despite the current situation in our part of the world.”

According to the ministry, 16% more Americans visited Israel in June than in June 2013. Some 460,000 Americans traveled to Israel in the first six months of the year, an all-time record, Israel’s Ministry of Tourism said.
 
“Despite the headlines about the present tensions in the country, life and tourism are continuing pretty much normally, with visitors touring as usual and with more than 120,000 visitors currently in Israel,” the ministry said.

Some are concerned
El Al, however, has waived rebooking fees for American travelers with flights booked through July 22.

And earlier this month a German cruise ship was struck by shrapnel near Tel Aviv. The AidaDiva was not damaged during the incident and no cruisers were injured.

Germany’s AIDA Cruises will avoid porting in Israel for July and August. A call in Santorini, Greece, will be substituted for scheduled calls in Ashdod, Israel.

In a year when the economy is up, and travel agents have been enjoying a rebound, worldwide strife may pose a threat to continued growth in the travel industry.