Air India initiates full & final settlement process in AI-171 plane crash
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.
ANI
Feb 12, 2026 21:39 IST
New Delhi [India], February 12 (ANI): Air India has announced the initiation of the final compensation process for families affected by the tragic crash of Flight AI-171, which occurred on June 12, 2025, in Ahmedabad.
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.
In a statement released by the airline, Air India expressed deep understanding that no monetary amount 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.
Air India emphasised that the final compensation offers are fair, compliant with applicable legal frameworks, and calculated individually based on specific circumstances. These payments are structured on a “full and final” basis following standard industry practices to bring closure to the matter.
As part of the agreement, families accepting the final amount are required to confirm they will have no future claims against Air India or related parties, including original equipment manufacturers, airports or government agencies. The airline highlighted the importance of this clause to ensure the settlement is truly conclusive and to prevent any subsequent direct or indirect claims. 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, as well as ongoing investigations into the crash cause and related legal actions in multiple jurisdictions. Air India has not commented on specific individual cases in line with its policy. (ANI)
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