For the relatives of the victims of the AI-171 plane tragedy, Air India has started the last and complete payment process. Depending on the specifics of each case, the compensation range is between Rs 1 crore and Rs 25 lakh. The settlement process comes after the crash in Ahmedabad on June 12, 2025, which claimed 260 lives. By June 12, 2026, the Aircraft Accident Investigation Bureau (AAIB) is anticipated to publish its final report. Shortly after takeoff, a Boeing 787-8 Dreamliner crashed, killing 241 people on board and 19 people on the ground.
Air India said in a statement that it deeply understands that money cannot make up for the loss of a loved one. Clarifying the ultimate recompense, however, is a big step for the bereaved families. The relatives of the deceased have already received it? 25 lakh in early interim payments from the airline. Additionally, the AI-171 Memorial and Welfare Trust, which was founded by the Tata Group, is currently funding the procedure for ex-gratia payments of one crore per departed family.
Air India requires families to sign legal waivers releasing the airline and related entities from future claims. Rs 25 lakh has been paid to 166 families, with payments to 52 more underway, and final compensation varies by family, including an additional Rs 10 lakh. The airline says offers are fair, legally compliant, and structured on a “full and final” basis. Families must confirm they have no future claims against Air India, airports, OEMs, or government agencies. Air India urges families to seek independent legal advice and emphasizes transparency, compassion, and support throughout the process, amid ongoing investigations and legal actions related to the crash.
