Air India on Wednesday said there is no deadline or pressure on the families of AI-171 crash victims to accept the final compensation offered by the airline, and that passengers are “completely free” to await the final investigation report before signing any Receipt, Release and Indemnity (RDI) document.
In a statement issued after Radhika Mishra, the daughter of former Gujarat chief minister Vijaybhai Rupani, raised concerns about the terms of the settlement, the airline said the Air Accident Investigation Bureau was conducting the investigation independently and Air India was not aware when the report would be published.
Rupani was among the 241 people killed on board when Air India flight AI-171, operating from Ahmedabad to London Gatwick, crashed shortly after take-off from Sardar Vallabhbhai Patel International Airport on June 12, 2025. The accident also killed 19 people on the ground. One passenger survived.
In her June 6 letter, Mishra questioned why families were required to consider “full and final” settlements before the investigation was complete and clauses that required families to waive future claims and compensate multiple entities, including manufacturers and government-linked bodies.
It also noted that the RDI is seeking relief not only from Air India, but also from Boeing, General Electric, GE Aerospace, Safran SA, Honeywell International Inc., Union of India, Ahmedabad International Airport Limited, insurance companies, and other third parties whose roles in the incident are yet to be determined.
She wondered: “Why is a final release sought before the truth is known?” “We deserve more than compensation. We deserve answers, we deserve transparency, and above all, we deserve closure.”
The final compensation process began in October 2025, after most of the interim payments were completed, Air India said in its statement.
“As such, we began the final compensation process in October 2025, once most of the interim compensation payments had been completed, by sending claim forms to families. Since then, we have been in dialogue with those families who wish to engage with us,” the airline said. The October 2025 timeline means the final settlement process has begun four months after the accident.
Regarding the indemnity clause, the airline said the wording follows standard industry practices in India and internationally. She said the intent was not to protect third parties from liability but to ensure that once a settlement is reached, it remains final and that the airline is protected from future direct or indirect claims, including those that might arise if families take action against equipment manufacturers or suppliers.
The airline also said it has taken steps to ensure families do not have to choose between immediate financial support and waiting for the outcome of the investigation. She referred to temporary compensation that was paid shortly after the accident and ex gratia assistance $Rs 1 crore has been disbursed from the AI-171 Memorial and Welfare Fund set up by the Tata Group.
Air India stressed that both options remain open and that families can decide the timing of any final settlement.
