Air India has formally begun the final compensation process for families impacted by the devastating crash of Flight AI-171 in Ahmedabad on June 12, 2025. The tragedy involved a Boeing 787-8 Dreamliner that went down shortly after takeoff, claiming the lives of 241 passengers and crew members, along with 19 people on the ground.
In an official statement, the airline acknowledged the enormity of the loss and said that while financial assistance cannot undo the grief, clarity on final compensation is an important step for affected families.
Interim Relief and Ex Gratia Payments
Following the accident, Air India disbursed interim compensation of ₹25 lakh to the families of each deceased victim. In addition, ex gratia payments of ₹1 crore per family are currently being processed through the AI-171 Memorial and Welfare Trust, a fund set up by the Tata Group.
The airline said that the final compensation amounts are being calculated individually, taking into account legal provisions and personal circumstances related to each case. It maintained that the settlements are being structured on a “full and final” basis, in line with established aviation industry practices, with the aim of bringing closure to the compensation process.
Air India stated that the final offers are fair and aligned with applicable legal frameworks, and that details have been shared with families in what it described as a transparent and compassionate manner.
Waiver Clause and Ongoing Investigations
As part of the final settlement agreement, families who accept the compensation are required to confirm that they will not pursue future claims against Air India or associated entities, including aircraft manufacturers, airport authorities or government bodies. The airline said this clause is necessary to ensure that the compensation process is conclusive and to prevent subsequent legal claims.
Air India added that it has encouraged families to seek independent legal advice before signing any agreement and has offered support options to help them make informed decisions.
The development comes amid reports of varied settlement figures and legal scrutiny in multiple jurisdictions as investigations into the cause of the crash continue. While questions surrounding accountability and technical findings remain under probe, the airline has reiterated its commitment to standing by the affected families during what it described as an extremely difficult period.
Air India has declined to comment on individual cases, citing policy, but said it remains dedicated to providing assistance and maintaining open communication as the process moves forward.