Air India has started the final settlement process for families of the 260 victims of the AI-171 crash. Compensation ranges from Rs 25 lakh to Rs 1 crore, offered on a 'full and final' basis in exchange for a legal waiver.
Air India has initiated the full and final settlement process for the AI-171 plane crash victims' families, offering compensation ranging from Rs 1 crore to Rs 25 lakh, depending on individual circumstances. The settlement process follows investigations into the crash, which killed 260 people, on June 12, 2025, in Ahmedabad.
The Aircraft Accident Investigation Bureau (AAIB) is expected to release its final report by June 12, 2026 The incident involved a Boeing 787-8 Dreamliner that crashed shortly after takeoff, resulting in the loss of 241 lives on board and 19 on the ground.
Compensation Structure
In a statement, Air India expressed its deep understanding that no amount of money can compensate for the loss of a loved one. However, providing clarity on final compensation represents a significant step for the grieving families.
The airline has already provided initial interim payments of ₹25 lakh to the families of the deceased. Additionally, the process for ex-gratia payments of ₹1 crore per deceased family, funded through the AI-171 Memorial and Welfare Trust established by the Tata Group, is currently underway. The airline requires families to sign legal waivers releasing Air India and its associated entities from future claims. Rs 25 lakh has already been paid to 166 families, with payments to 52 others in process. Notably, the final compensation varies by family, with an additional Rs 10 lakh payment.
Settlement Agreement and Legal Terms
Air India emphasised that the final compensation offers are fair, compliant with applicable legal frameworks, and calculated on a case-by-case basis. These payments are structured on a "full and final" basis, in accordance with standard industry practices, to bring closure to the matter.
As part of the agreement, families accepting the final amount must confirm that they have no future claims against Air India or its related parties, including original equipment manufacturers, airports, or government agencies. The airline emphasised the importance of this clause to ensure the settlement is final and to prevent any subsequent direct or indirect claims.
Guidance and Support for Families
Air India stressed its commitment to transparency and compassion in communications with the families. It has advised them to seek independent legal advice before making a decision and has offered support options throughout the process.
The airline reiterated its ongoing dedication to supporting all impacted families as they navigate this challenging period. This development comes amid reports of varying settlement offers, including additional amounts in exchange for indemnity waivers, and ongoing investigations into the crash's cause and related legal actions across multiple jurisdictions. Air India has not commented on specific individual cases in line with its policy. (ANI)
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