On 1 January 1978, the Boeing 747 operating the flight crashed into the Arabian Sea about 3 km (1.9 mi; 1.6 nmi) off the coast of Bandra, less than two minutes after take-off, killing all 213 passengers and crew on board.

[1][4] Approximately one minute after takeoff from runway 27, Captain Kukar made a scheduled right turn upon crossing the Bombay coastline over the Arabian Sea, after which the aircraft briefly returned to a normal level position.

It was after sunset and the aircraft was flying over a dark Arabian Sea, leaving the aircrew unable to visually cross-check their AI instrument readings with the actual horizon outside the cockpit windows.

[1][9] The partially recovered wreckage revealed no evidence of explosion, fire, or any electrical or mechanical failure; and an initial theory of sabotage was ruled out.

Steven C. Marshall, the attorney for Boeing asserted that the crash had been caused by Captain Madan Kukar, who he said was "flying illegally under the influence of diabetic drugs, a condition compounded by his alcoholic intake and dieting in the 24 hours before the flight," and not due to equipment malfunctions.