Air India reassures AI-171 crash victims’ families over compensation and settlement terms

Air India has clarified that families of victims of the AI-171 tragedy, are under no obligation to accept final compensation within any fixed timeframe and may choose to wait for the release of the official investigation report before making a decision.

In a communication addressed to the family of a victim, the airline expressed its continued sorrow over the loss of lives in the crash and acknowledged that no financial compensation could make up for the loss of a loved one.

Air India stated that while it has begun discussions regarding final compensation, families remain free to decide when, or whether, they wish to proceed with a settlement.

The airline noted that it initiated the final compensation process in October 2025 after most interim compensation payments had been completed.

According to Air India, claim forms were distributed to families following multiple requests from those wishing to proceed, while others have chosen to await the findings of the ongoing investigation.

Air India also pointed out that the accident investigation is being conducted independently by the Aircraft Accident Investigation Bureau (AAIB), and that the airline has no information regarding when the final report will be released.

The airline further stated that immediate financial assistance had already been provided to affected families through interim compensation payments. In addition, the AI-171 Memorial and Welfare Trust, established by the Tata Group, has disbursed ex gratia assistance of ₹1 crore to nearly all families who lost relatives in the crash.

Addressing concerns raised by some families over the wording of the Receipt, Discharge and Indemnity (RDI) document required for final settlements, Air India said the language reflects standard industry practice followed by airlines in India and internationally.

The airline maintained that the broad wording in the document is intended solely to ensure that settlements remain final and to protect Air India from future direct or indirect claims after compensation has been accepted.

It added that the provision is not intended to shield third parties, such as equipment manufacturers or suppliers, from any legal liability that may arise.

Air India reiterated that families have the flexibility either to await the outcome of the investigation before signing the final settlement documents or to proceed with compensation immediately if they choose to do so.

The Air India Flight AI-171 crash, which took place on June 12 last year in Ahmedabad, remains under investigation, with families continuing to await the final findings even as the anniversary of the tragedy draws near.