Air India Offers Families £8,000 Settlement in Exchange for Legal Waiver in AI171 Crash
Airline presents indemnity agreements to 242 crash victims’ families amid ongoing lawsuits in UK and US; families offered Rs 1-2 million to waive legal rights as investigations continue
AHMEDABAD/NEW DELHI: Air India has offered additional compensation to families affected by the devastating June 12, 2025 Boeing 787-8 crash, asking them to waive their legal rights in exchange for a final settlement, according to legal representatives handling claims for over 130 families.
The London Gatwick-bound aircraft crashed just 32 seconds after takeoff from Ahmedabad’s Sardar Vallabhbhai Patel International Airport, killing 241 of the 242 people on board and 19 others on the ground. The crash into BJ Medical College’s hostel block remains one of India’s deadliest aviation disasters.
Legal counsel involved in UK cases confirmed that Air India has presented documents requiring relatives to “irrevocably and forever” waive their legal rights in return for payments reportedly starting at Rs 1 million (approximately £8,000), with some offers reaching Rs 2 million (£16,000).
The airline had earlier announced an interim compensation of Rs 25 lakh (approximately £21,500) to families of the deceased. By July 2025, Air India reported paying interim compensation to families of 166 victims, with payments to another 52 families in process.
However, families of four victims have separately filed a lawsuit in the United States against Boeing and Honeywell, the company that manufactured the fuel control switches. The lawsuit, filed in September, blames manufacturing defects for the crash.
An initial investigative report by India’s Aircraft Accident Investigation Bureau revealed that seconds after takeoff, both engine fuel cutoff switches mysteriously moved from “run” to “cutoff,” leading to a sudden loss of thrust. Cockpit voice recordings captured confusion between pilots regarding the switch positions.
Air India maintains it is handling compensation in accordance with applicable laws and remains committed to supporting affected families. The airline has implemented fleet inspections, safety reviews, and operational enhancements following the accident.
The Tata Group has also established ‘The AI-171 Memorial and Welfare Trust’ dedicated to crash victims and pledged support for rebuilding the damaged BJ Medical College hostel infrastructure.
Legal proceedings continue in both the UK and US, with confidential settlement discussions expected before any full trial.
