Ahmedabad AI171 plane crash: Air India begins process for final compensation

AIR India has initiated the process for providing final compensation to the families of those who died in the AI 171 plane crash in Ahmedabad, wherein those willing to accept the amounts have to ensure that they will not make any future claims against the airline, original equipment manufacturers and government agencies in relation to the fatal accident.

Tata Group-owned Air India is in the process of paying the interim compensation of ₹25 lakh. In case the final compensation amount calculated is less than ₹25 lakh, which was paid as interim compensation, then those families will be offered an additional ₹10 lakh, sources said on Thursday.

Besides, an ex gratia amount of ₹1 crore to the families of those who died in the crash is being given by the AI-171 Memorial and Welfare Trust, set up by the Tata Group.

In one of the worst aircraft accidents in India, a total of 260 people, including 241 passengers, died after Air India's Boeing 787-8 aircraft operating flight AI171 to London Gatwick crashed soon after take-off from Ahmedabad on June 12, 2025.

Air India on Thursday said it was ensuring that the final compensation being offered to families "is fair and in accordance with the law".

"Following initial interim payments of ₹25 lakh to families of the deceased, and with the process of ex-gratia payment of ₹1 crore from The AI-171 Memorial and Welfare Trust being underway, Air India has initiated the final compensation process," the airline said in a statement.

While emphasising that the information regarding the final compensation was being shared transparently with the affected families, the airline also said, following recognised industry standards, compensation payments are made on a full and final basis in order to provide a conclusion.

The quantum of final compensation for each family will vary depending on various factors.

Once the final compensation amount is decided, the family concerned will also be required to sign the Discharge and Indemnity form, whereby it would be accepted that no future claims would be made against the airline and other entities, the sources added.

The amounts offered to each family have been calculated using the applicable legal framework and differ depending upon individual circumstances, the statement said.

"Families agreeing to receive final compensation are requested to confirm that they have no future claims against Air India or anyone else, including original equipment manufacturers, airport, or government agencies.

"This particular aspect is important to ensure that the process is indeed final, and to prevent Air India from receiving any direct or indirect claims in the future," Air India said.

Details about the number of families that would be offered the final compensation in this manner could not be immediately ascertained.

Meanwhile, some of the families of the crash victims have already moved legal forums against the airline in relation to the accident.

The Aircraft Accident Investigation Bureau (AAIB) is probing the crash.

On Wednesday, the Supreme Court asked the Centre to file a brief report on the "procedural protocol" followed so far, after it was informed that the AAIB's investigation into the plane crash is at its fag end.

In its preliminary report on the crash that was released on July 12 last year, AAIB said the fuel supply to both engines of the plane was cut off within a gap of one second, confusing the cockpit soon after take-off.

"In the cockpit voice recording, one of the pilots is heard asking the other why he cut off. The other pilot responded that he did not do so," it had said.