No Pressure on Ahmedabad Crash Victims' Families to Accept Compensation Settlement: Air India

Air India has denied pressuring victims' families of the AI-171 crash to accept final compensation within a fixed timeframe, saying families are "entirely free" to wait until the investigation report is released. The airline made these clarifications in a letter to Radhika Mishra, daughter of former Gujarat Chief Minister Vijay Rupani, according to a report by The Indian Express.

Mishra had written to Tata Sons and Air India Chairman N Chandrasekaran opposing a legal waiver requirement attached to the airline's final compensation offer. In her email, she argued that the investigation into the crash was not yet complete, but the airline was asking families to permanently waive present and future claims against Air India and other stakeholders — including aircraft manufacturer Boeing, engine makers General Electric and Honeywell, the Ahmedabad airport, and Indian government agencies — before all the facts were established.

Air India's Response

In its letter to Mishra, Air India said final compensation offers were made because a number of families had expressed a desire to receive compensation rather than wait for the investigation report. It added that the legal waiver requirement was in line with standard practice adopted by airlines globally when settlements are made on a final basis.

"There is absolutely no deadline or pressure on any family or individual to accept our offer within a set timeframe. It is for this reason that our offer of final compensation did not set out any timetable for acceptance. Families are entirely free to wait until the investigation report has been released, as some have chosen to do," the airline said, according to The Indian Express.

Air India also noted that the investigation was being independently conducted by the Aircraft Accident Investigation Bureau (AAIB) and that the airline itself was not aware of when the final report would be released. It said it would not be fair to families wishing to proceed with compensation to put the process on hold indefinitely.

Addressing concerns about the wording of the Receipt, Discharge and Indemnity (RDI) document, Air India said the language mirrored the standard approach taken by airlines both in India and internationally. The airline also said it had "no interest whatsoever" in shielding third parties such as equipment manufacturers from legal liability, but that the broad wording was necessary to ensure that final settlements remained final and to protect the airline from future direct or indirect claims.

Mishra was not the first to raise objections to the waiver clause. Several other victims' families and their lawyers had flagged similar concerns months earlier.

The Crash and Compensation

The AI-171 crash claimed 260 lives — 229 of the 230 passengers on board the Boeing 787-8 aircraft, 12 crew members, and 19 people on the ground — making it the worst aviation disaster involving an Indian airline in four decades.

Air India initiated the final compensation process in October. The final offers are in addition to an interim payment of ₹25 lakh per victim and an ex-gratia of ₹1 crore per victim from The AI-171 Memorial and Welfare Trust set up by the Tatas. Final compensation amounts vary based on individual circumstances.

Under the Montreal Convention, airlines are strictly liable for damages up to approximately ₹2 crore per passenger, with higher liability possible if negligence is established.