Ahmedabad: Air India has presented a financial settlement offer to families of passengers who lost their lives in the AI-171 Ahmedabad plane crash, but the proposal has sparked controversy due to conditions attached to the compensation.
According to reports, the airline’s settlement proposal requires families to sign a liability waiver, preventing them from pursuing future legal action against Air India and related entities. This condition has raised concerns among victims’ families and legal representatives.
Settlement Offer and Conditions
Under the proposed settlement framework, affected families may receive a fixed cash payment, reportedly including amounts of around £8,000 (approximately ₹1 lakh) in certain cases. However, beneficiaries must agree not to file lawsuits against Air India, aircraft manufacturer Boeing, engine and system suppliers, aviation authorities, or other involved entities.
Air India has described the move as part of a settlement process aimed at resolving claims outside lengthy court battles.
Details of the Ahmedabad Crash
The tragedy occurred on June 12, 2025, when an Air India Boeing 787-8 Dreamliner operating Flight AI-171 from Ahmedabad to London Gatwick crashed just minutes after takeoff. The crash resulted in the deaths of nearly 260 people, including passengers, crew members, and individuals on the ground. Reports indicated that only one person survived the incident.
The crash remains one of India’s worst aviation disasters in recent years.
Compensation Already Announced
Following the accident, Air India and its promoter Tata Sons had earlier announced financial support packages for victims’ families, including:
- ₹25 lakh interim compensation per victim, nearly 95% of which has reportedly already been distributed.
- Additional assistance of up to ₹1 crore per family through a Tata-supported relief trust aimed at providing long-term support.
Controversy Over Legal Waiver
The current controversy stems from the clause requiring families to relinquish their rights to pursue further legal claims. Representatives of several affected families argue that accepting such terms could limit their ability to seek higher compensation through courts in the future.
Legal experts suggest families should carefully evaluate settlement terms before signing any waiver agreements.
Air India has yet to respond publicly to the criticism, but discussions between families, lawyers, and airline representatives are ongoing.