Air India settles 95% of interim compensation claims for June crash victims

Air India has reimbursed 95% of interim compensation to the families affected by the fatal plane crash in June, Chief Executive Officer Campbell Wilson said on Tuesday. He stated that around 70 families have received payments from the AI-171 Memorial and Welfare Trust, set up by the Tata Group.

The airline is paying Rs 25 lakh as interim compensation and Rs 1 crore as full compensation to each affected family.

The crash occurred on June 12 when a Tata-owned Air India Boeing 787-8 aircraft (AI-171) crashed shortly after takeoff from Ahmedabad, killing 260 people, including passengers and crew. A total of 180 families were impacted.

Wilson confirmed that while compensation to 70 families is completed, payment is underway for 50 more, and documentation is pending for the remaining cases.

The Tata Group has set up the AI-171 Memorial and Welfare Trust to manage compensation and welfare initiatives for victims' families.

A preliminary investigation report by the Aircraft Accident Investigation Bureau (AAIB) on July 12 stated that fuel supply to both engines was cut off within one second, causing chaos in the cockpit. The cockpit voice recorder captured one pilot asking, “Why did you cut off?” to which the other replied he did not do so, according to the report.