Air India Pays Interim Compensation to 95% of Families After Deadly AI171 Crash
Interim relief reaches 95% of grieving kin after deadly Ahmedabad disaster.
Air India has disbursed interim compensation to 95% of the 180 families impacted by the catastrophic crash of Flight AI171 on June 12, 2025, which claimed 260 lives shortly after takeoff from Ahmedabad's Sardar Vallabhbhai Patel International Airport. The Boeing 787-8 Dreamliner, en route to London Gatwick, suffered a sudden dual-engine fuel cutoff that plunged the aircraft into a residential area, killing 241 of the 242 passengers and crew on board while leaving only one survivor amid the wreckage.
The tragedy extended beyond the skies, claiming an additional 19 lives on the ground when the plane slammed into a densely populated neighborhood, sparking immediate outrage over aviation safety protocols. The Tata Group, Air India's parent company, swiftly established the AI-171 Memorial and Welfare Trust to coordinate relief efforts, providing an ex gratia payment of Rs 1 crore per family, with 70 already finalized and 50 more in active processing pending documentation.
Air India CEO and Managing Director Campbell Wilson reaffirmed the airline's unwavering support during a recent briefing, stating that the commitment to those affected, whether airborne or earthbound, will endure indefinitely. Wilson addressed concerns over the Boeing 787 fleet's reliability, noting that the Ram Air Turbine deployment seen in the incident ranks as just one of 31 similar occurrences across the global fleet, and emphasized ongoing collaboration with original equipment manufacturers to preempt any anomalies.
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A preliminary report from the Aircraft Accident Investigation Bureau, released on July 12, pinpointed the fuel supply failure to both engines occurring within a single second, sowing confusion in the cockpit as captured on voice recordings where pilots exchanged frantic queries about the unintended cutoff. The report issued no immediate directives to Boeing, engine suppliers, or Air India operations, concluding that current investigations reveal no urgent modifications required at this stage.
As the full probe continues, Air India's fleet of 32 Dreamliners undergoes rigorous internal reviews to enhance procedural safeguards, with Wilson highlighting a comprehensive post-incident audit that identified areas for operational refinement. The swift compensation rollout underscores the airline's priority on humanitarian aid amid mounting scrutiny, as families await comprehensive insurance settlements and justice from the unfolding inquiry.
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