AI171 plane crash: Air India seeks ‘full and final’ closure as compensation enters last phase

Air India has initiated the process of determining and disbursing final compensation to families of those who lost their lives in the AI-171 crash, stating that payments will be made on a “full and final” basis.

Families opting to accept the final amount will be required to sign a discharge and indemnity form confirming that no further claims will be pursued against the Tata-owned airline, aircraft manufacturers, airport authorities or government agencies in connection with the accident.

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The Boeing 787-8 aircraft operating flight AI-171 to London Gatwick crashed shortly after take-off from Ahmedabad on June 12 last year killing 260 people, including 241 passengers, in one of India’s deadliest aviation accidents.

The carrier had earlier announced an interim compensation of Rs 25 lakh for each bereaved family.

According to PTI sources, if the final compensation assessed under the applicable legal framework falls below that amount, an additional Rs 10 lakh will be offered to ensure families are not disadvantaged.

Separately, the AI-171 Memorial and Welfare Trust, set up by the Tata Group, is extending an ex gratia payment of Rs 1 crore to the families of the deceased.

Terms of settlement and legal framework

In a statement on Thursday, AI said it was taking steps to ensure that the final compensation offered is fair and in accordance with the law. The airline said the amounts have been calculated using established legal principles and may vary depending on individual circumstances.

It added that, in line with recognised industry standards, compensation is structured to provide closure. Families agreeing to receive the final settlement will need to confirm that they will not raise future claims against Air India or any other related entities.

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The airline described this provision as necessary to conclude the compensation process and avoid subsequent litigation.

While the number of families that may accept the final settlement is not yet clear, some relatives of the victims have already approached legal forums in connection with the crash.

Investigation and court scrutiny

The compensation process unfolds as the Aircraft Accident Investigation Bureau continues its probe into the tragedy.

The Supreme Court on Wednesday asked the Centre to submit a brief report outlining the procedural protocol followed in the investigation, after being informed that the inquiry is nearing completion.

In its preliminary findings released in July last year, the investigation agency had said fuel supply to both engines was cut off within a gap of one second, leading to confusion in the cockpit moments after take-off.

Cockpit voice recordings indicated that one pilot questioned the other about the cut-off, with the latter responding that he had not done so.