Air India has disbursed interim compensation of ₹25 lakh each to the families of 166 victims of the Air India Flight AI171 Ahmedabad plane crash that occurred on June 12, 2025. The airline is also processing payments for the families of another 52 victims.
The tragic accident, involving a Boeing 787-8 Dreamliner, resulted in a total of 260 fatalities, including passengers, crew members, and individuals on the ground. Of the 242 people on board, 241 lost their lives. The crash is considered one of the worst aviation disasters in India in recent decades.
Air India has released interim compensation to the families of 147 of the 229 deceased passengers and to the families of the 19 individuals who lost their lives at the accident site. The airline has verified the necessary documents for 52 others, and compensation will be progressively released to those families. The interim payment aims to meet the immediate financial needs of the affected families and will be adjusted against the final compensation amount to be determined later.
Air India, owned by the Tata Group, has expressed solidarity with the families affected by the AI171 accident. The airline has stated its commitment to providing support during this difficult time and is mourning their loss.
In addition to the interim compensation, the Tata Group has established the 'AI-171 Memorial and Welfare Trust' in honor of the victims. The Trust has pledged an ex-gratia payment of ₹1 crore for each deceased individual. Furthermore, the Trust will contribute to rebuilding the B.J. Medical College Hostel, which was damaged in the crash. The Trust will also provide assistance to first responders, medical and disaster relief professionals, social workers, and governmental staff who provided support after the accident.
Air India had announced on June 14, 2025, that it would provide interim compensation of ₹25 lakh (approximately £21,500) to the families of the deceased and survivors to help address immediate financial needs. This payment is in addition to the ₹1 crore compensation announced by Tata Sons.
Air India has also deployed a team of trained psychologists and doctors in Ahmedabad to provide trauma counseling and psychological support to affected families and individuals. A centralized helpdesk has been active since June 15 to assist families in processing claims for interim compensation, ensuring faster documentation and prompt initiation of compensation procedures. The airline is also reaching out to those injured and the families of those who lost their lives on the ground to initiate the compensation process.
Under the Montreal Convention, which applies to most international flights, airlines are liable for damages up to a certain threshold, approximately ₹1.50 crore per passenger, and may be held liable for higher amounts if negligence is proven.
