Air India disburses interim compensation to 91% of Ahmedabad crash victims' families

Air India confirmed that 91 per cent of the families bereaved in the June crash of Flight AI171 have received interim compensation, marking its most comprehensive statement since July. At the same time, The Tribune understands that the Tata Group’s AI‑171 Memorial and Welfare Trust, with a corpus of Rs 500 crore, has already begun making ex‑gratia payments of Rs 1 crore to some families.

In a message to The Tribune, an Air India spokesperson said: “Air India stands in solidarity with the families and those affected by the AI171 accident. We continue to mourn their loss and remain fully committed to providing support during this difficult time. Over two months ago, Air India started releasing interim payment of Rs 25 lakh to the affected families, to help them meet their immediate financial needs. The interim payment will be adjusted against any final compensation."

“So far, Air India has released interim compensation to the families of 91 per cent of the deceased passengers — that is, 209 of the 229 passengers who died — and the 19 people who lost their lives at the accident site. Payment to the others will be made as soon as the relevant documents are received from their next of kin,” the spokesperson added.

The airline said it remains in close contact with relatives and is processing further claims as documentation is completed.

The final compensation procedures are expected to begin very soon. Each family may receive a different amount, depending on the age of the victim, their earnings, and their future earning potential.

The Tata Group has formally registered the AI-171 Memorial and Welfare Trust with a corpus of Rs 500 crore. The Trust has pledged ex-gratia payments of Rs 1 crore for each deceased passenger, in addition to legal compensation. According to sources, the Trust will also support longer-term needs, such as helping children of victims with education and further studies. The Tribune understands that some disbursements from the Trust may already have begun.

A similar precedent exists: following the 26/11 Mumbai terror attacks, the Tata Group established the Taj Public Service Welfare Trust in December 2008 to support victims, their families and first responders.

The AI171 accident remains one of the worst tragedies in Indian civil aviation. The aircraft came down shortly after take-off from Ahmedabad, prompting a large-scale recovery operation and international expressions of sympathy.

Media reports have also cited India’s Ministry of External Affairs defending the official response, with a spokesperson stating that “all mortal remains were handled with utmost professionalism and with due regard for the dignity of the deceased.”

Meanwhile, the aftermath of the disaster has widened to international courts. On September 17, families of four victims filed suit in Delaware against Boeing and Honeywell, alleging that a faulty fuel cut-off switch contributed to the crash. According to Reuters, cited by The Guardian, the complaint argued that “the switches are in a place in the cockpit where they are more likely to be inadvertently pushed, which effectively guaranteed that normal cockpit activity could result in inadvertent fuel cut-off.”

While investigations into the cause of the crash continue, Air India has underlined that its immediate priority is to extend practical and financial assistance to those who lost loved ones.