Air India, Tata Sons disburse nearly Rs 300 crore to AI171 victims' families

Mumbai: Air India and Tata Sons have disbursed nearly ₹300 crore to families affected by the AI171 crash ahead of the tragedy's first anniversary on June 12. Families of 96% of the deceased have received Air India's ₹25 lakh interim compensation, while 91% have received Tata Sons' ₹1 crore ex-gratia payment through the AI171 Memorial and Welfare Trust, the airline said, as families wait for closure from the Accident Investigation Bureau (AAIB) report.

Air India also said 94% of those injured on the ground have received either interim or final compensation, while discussions on final settlements are underway.

The final compensation will vary significantly for each family because it is legally calculated based on the deceased passenger's age, income, and number of dependents, rather than a flat rate. Under the Montreal Convention, the airline must compute the specific, individual economic loss for each victim's next of kin.


The disaster, involving a London-bound Boeing 787 Dreamliner that crashed shortly after take-off from Ahmedabad, killed 241 of the 242 people on board and several people on the ground, making it one of the worst aviation accidents in India's history.

With most interim payments completed, Air India has started engaging families on final settlements. "Families or individuals have absolutely no deadline or pressure to accept our offer within a set timeframe," the airline said in a statement to ET.