- Air India denies pressuring families to accept compensation within a fixed timeframe
- Interim compensation of Rs 25 lakh given to 96% of families of last year's crash victims so far
- Final investigation report on AI-171 crash in Ahmedabad by AAIB is still pending completion
Two days before the first anniversary of the crash of AI-171, NDTV has accessed a letter written by Air India to Radhika Rupani, the daughter of former Gujarat Chief Minister Vijay Rupani who was killed in the crash. In the letter, Air India denies applying pressure on any family or individual to accept full and final compensation within a fixed time-frame.
"Our offer of final compensation did not set out any timetable for acceptance. Families are entirely free to wait until the investigation report has been released, as some have chosen to do," the airline said in its letter to the former chief minister's daughter.
Earlier, Radhika Rupani wrote to Tata Sons chief N Chandrasekaran, seeking "transparency, answers".
"The investigation is not yet complete, yet the document requires families to permanently waive present and future claims before all facts are known. We deserve more than compensation. We deserve answers. We deserve transparency and above all closure," she claimed in her letter to N Chandrasekaran.
Air India maintains that there's "no reason" for families to feel forced to choose between immediate financial support or wait till the final investigation report.
"There is absolutely no reason for families to feel pressured to choose between immediate financial support and awaiting the investigation report. In the aftermath of the accident, Air India immediately started disbursing compensation on an interim basis. This was intended to meet the immediate financial needs of families, whilst the longer process of assessing final compensation got underway," Air India said in response to the letter.
In addition to a compensation package, the Tatas also established the AI-171 Memorial and Welfare Trust which gave financial assistance of Rs 1 crore to nearly all of the families who lost loved ones in the accident.
Two hundred and sixty people were killed on June 12, 2025 when AI-171, an Air India Boeing 787 Dreamliner, crashed shortly after taking off from Ahmedabad.
The aircraft was bound for London's Gatwick Airport.
Clarifying the wording in its Receipt, Discharge & Indemnity document which families of crash victims are required to sign, Air India said, ''The broad wording is only to ensure that settlements of final compensation are indeed final, and to protect Air India from receiving any direct claims (from other family members) or indirect claims (from equipment manufacturers, suppliers etc.) in the future, despite families having entered into a final settlement with Air India.''
The crash of AI-171 is being investigated by India's Aircraft Accident Investigation Board (AAIB).
Some reports suggest that the AAIB has not yet sent a draft copy of its final investigation report to regulators such as the US Federal Aviation Authority (FAA) and the UK's Civil Aviation Authority (CAA).
This is a mandatory requirement per International Civil Aviation Organisation (ICAO) norms since the aircraft was manufactured in the United States while the UK's Civil Aviation Authority was a part of the investigation process.
In the absence of a final report, it is possible the AAIB may release a second preliminary report by June 12, the first anniversary of the crash. This may contain additional detail on the circumstances in which AI-171 went down. Sources indicate that it was not possible for Air India to delay the compensation process since there is no clarity on when the final report will emerge.
People cannot be denied compensation till such time as there is a final report on the crash, sources told NDTV.
According to sources, Air India has disbursed an interim compensation of Rs 25 lakh to each family who has lost a loved in the crash to help meet their immediate financial needs. The payment has been made to families of 96% of the victims. The remaining cases are mainly those where documentation is incomplete or family disputes are still ongoing.
94% of those who were injured on the ground have either got one time full and final compensation or interim compensation, based on the nature of injury incurred and any loss of livelihood, the airline said. The remaining individuals collected a form from the helpdesk after the crash, the airline said, but have since not submitted them.
With most of the interim payments disbursed, Air India has begun the final compensation process and is actively engaging with the families.
Under the Montreal Convention (applicable because it was an international flight), Air India is strictly liable for Rs 1.5 crore ($160,000+) per passenger, with potential for unlimited additional damages if negligence is proven.
Negotiating "unlimited additional damages" can prove to be legally challenging but is a process that can only begin once the final report becomes available since that will define the extent of negligence of the airline.
Since the crash, Air India has also worked with authorities to return to the families the personal belongings of the victims of the crash in cases where they could be identified.
"Over 22,000 personal belongings were preserved and listed with meticulous care. Of the associated personal belongings pertaining to 187 deceased, personal belongings have been returned for 139 deceased in India and in the UK, with remaining cases primarily constituting of situations in which documentation is incomplete, or where families have declined to accept personal belongings," the airline said.
Personal digital devices, including smart phones and laptops which were recovered from the crash site, have also been returned to families after being screened by investigators, the airline said.
Twenty five digital devices were recovered from the wreckage. Of these, 16 have been returned to the respective families. The remaining cases are primarily those where documentation is incomplete or where families have declined to accept the personal belongings.
Following the crash, CEOs of Tata companies have met with 152 of the 165 affected families in India and the UK to express their condolences and offer support.
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