Air India has begun offering additional compensation to families affected by last year’s fatal crash of Flight AI171, conditioning the payments on legal waivers that would bar future claims against the airline and related parties. The move comes as multiple lawsuits continue in India, the United Kingdom, and the United States, and as the official investigation into the cause of the accident remains unfinished.
The London-bound Boeing 787-8 Dreamliner crashed shortly after takeoff from Ahmedabad’s Sardar Vallabhbhai Patel International Airport on 12 June 2025. The aircraft was en route to London Gatwick Airport with 242 people on board. All but one passenger and crew member were killed, along with 19 people on the ground when the jet struck a residential medical college hostel and erupted in flames.
Additional Settlement Offer Presented to Families
According to legal representatives handling claims for more than 130 families, Air India has circulated indemnity documents that require relatives to “irrevocably and forever release” the airline and other associated entities from any present or future legal action. In exchange, families are being offered additional payments reportedly starting at Rs 1 million, or about £8,000, with some cases reaching Rs 2 million.
The proposed settlement is positioned as supplemental compensation rather than a replacement for earlier payouts. Following the crash, Air India announced an initial compensation of Rs 2.5 million per deceased passenger. Its parent company, Tata Group, separately pledged Rs 10 million per victim, a commitment that was widely publicized in the days after the accident.
Lawyers representing several families contend that the new agreement is designed to limit claimants’ ability to participate in ongoing litigation or to bring future lawsuits once the final accident report is issued. They argue that families are being asked to make binding legal decisions before investigators have concluded their work or determined definitive responsibility for the crash.
Legal Challenges Across Multiple Jurisdictions
Litigation related to Flight AI171 is now unfolding in several countries. In the United Kingdom, families of some of the 53 British nationals who died in the accident have initiated personal injury proceedings in the High Court in London.
According to The Independent, court proceedings have been issued against Air India, although formal service processes are still underway. Legal counsel involved in the cases has confirmed that confidential settlement discussions are expected, and that both sides may seek resolution before the matter proceeds to a full trial.
In the United States, a separate lawsuit has been filed by families of four victims. That case, lodged in September last year, names Boeing and Honeywell as defendants. The suit alleges that the aircraft manufacturer and the company responsible for certain cockpit components bear responsibility for the accident. The filing followed the release of a preliminary investigative report, issued approximately 30 days after the crash in accordance with international aviation regulations.
Findings From the Preliminary Investigation
The initial investigation revealed that seconds after takeoff, both engine fuel cutoff switches moved from “run” to “cutoff,” resulting in a sudden loss of thrust. Cockpit voice recordings reportedly captured confusion between the pilots regarding the switch positions during the critical moments after liftoff.
Although the switches were returned to the “run” position within seconds, investigators found that the aircraft was unable to regain sufficient power. One of the pilots issued a mayday call shortly before the aircraft descended into the hostel complex, triggering a post-impact fire that caused additional casualties on the ground.
Authorities have emphasized that these findings are preliminary. The final accident report has not yet been released, and investigators continue to examine potential technical malfunctions, mechanical design issues, and human factors that may have contributed to the tragedy.
Airline Response and Ongoing Review
Air India has stated that it is managing compensation in line with applicable laws and international conventions. The airline has said it remains committed to supporting affected families while cooperating fully with investigators and regulators.
Since the crash, the carrier has conducted fleet-wide inspections, reviewed operational procedures, and implemented additional safety and training measures. However, legal representatives for several families maintain that any effort to secure waivers before the conclusion of the investigation is premature.
As court proceedings advance and investigators work toward a final report, the proposed settlements underscore the growing legal and financial pressure facing Air India nearly a year after one of the deadliest aviation accidents involving an Indian carrier in decades.
