Air India has started the process of paying final compensation to the families of those who died in the AI 171 plane crash, where those willing to accept the money will have to ensure that they will not make any future claims against the airline, original equipment manufacturers and government agencies in connection with the fatal accident.
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Tata Group-owned Air India is in the process of providing interim compensation ₹25 lakhs. In case, the final compensation amount calculated is less ₹25 lakh, which was given as interim compensation, will then be paid additionally to those families ₹10 lakh, sources said on Thursday.
Also, an ex gratia amount ₹1 crore to the families of those who died in the accident is being given by the AI-171 Memorial and Welfare Trust set up by the Tata Group.
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In one of India’s worst air crashes, Flight AI171, operated by Air India’s Boeing 787-8, crashed at London Gatwick on June 12, 2025, shortly after takeoff from Ahmedabad, killing a total of 260 people, including 241 passengers.
Air India on Thursday said it was ensuring that the final compensation paid to the families was “fair and in accordance with law”.
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“Following its initial interim payment ₹25 lakhs to the families of the deceased along with ex-gratia payment process ₹1 crore from the AI-171 Memorial and Welfare Trust, Air India has initiated the final compensation process,” the airline said in a statement.
Asserting that final compensation information is being shared transparently with the affected families, the airline also said, following accepted industry standards, compensation payments are made on a full and final basis to provide a conclusion.
The final compensation amount for each family will vary depending on various factors.
Once the final compensation amount is decided, then the concerned family will also have to sign the discharge and compensation form, wherein it will be accepted that no future claims will be made against the airline and other agencies, sources added.
The amount given to each family is calculated using the applicable legal framework and varies depending on individual circumstances, the statement said.
“Families agreeing to receive final compensation are requested to ensure that they have no future claims against Air India or anyone else including original equipment manufacturers, airports, government agencies.
“This particular aspect is important to ensure that the process is indeed finalized and to prevent Air India from receiving direct or indirect claims in the future,” Air India said.
Details on the number of families to be compensated under the scheme could not be immediately confirmed.
Meanwhile, some families of the victims of the accident have already filed a petition against the airline in the legal forum regarding the accident.
The Aircraft Accident Investigation Bureau (AAIB) is investigating the accident.
On Wednesday, the Supreme Court asked the Center to file a brief report on the “procedural protocol” followed so far, after it was informed that the AAIB’s probe into the plane crash was at its final stage.
In its preliminary report on the accident, published on July 12 last year, the AAIB said the fuel supply to both of the plane’s engines was cut off within a second, causing confusion in the cockpit shortly after take-off.
“In the cockpit voice recording, one pilot is heard asking the other why he cut off. The other pilot responded that he had not,” it said.
