Air India Offers Cash Settlements to Crash Victims' Families in Exchange for Legal Waivers
Air India has been approaching families of victims from last year's devastating Ahmedabad plane crash with cash settlement offers, conditional on them surrendering all rights to pursue legal action against the airline and aircraft manufacturer Boeing. The Independent has exclusively learned that the airline is proposing an additional payment of Rs1 million (£8,085) to families who sign indemnity documents.
The Tragic Incident and Initial Compensation
The London-bound Boeing 787-8 Dreamliner, operating as Flight 171, crashed moments after taking off on 12 June, striking a medical college hostel and erupting into a fireball. The aircraft carried 242 people, with only one passenger, Viswashkumar Ramesh, surviving the disaster. Tragically, another 19 individuals on the ground lost their lives.
In the months following the crash, Air India announced initial compensation payments of Rs2.5 million (£20,215) to each victim's family. The airline's owner, Tata Group, pledged an additional Rs10 million (£80,850) per family. However, the ongoing investigation has not yet determined responsibility for the catastrophe.
The Controversial Settlement Offer
According to legal representatives for 130 victims' families, Air India is now offering this extra final payment in exchange for families signing documents that would "irrevocably and forever release" any right to sue or make claims related to the crash. The indemnity would protect Air India and Boeing from all legal responsibility, regardless of jurisdiction.
Ayush Dubey, case manager at Chionuma Law, expressed strong opposition to the proposal: "We oppose this document. It asks families to give up all their legal rights against every party while the investigation is still ongoing. The full facts are not known yet, and it is not clear who is responsible."
Dubey highlighted particular concerns about injured families still undergoing medical treatment being asked to surrender future claims. "Families should not be pressured to sign away their rights before the investigation is complete," he emphasized.
Ongoing Legal Proceedings
Despite the settlement offers, multiple legal actions are progressing through international courts. In London, several families of victims have filed personal injury lawsuits at the High Court, with 53 of the deceased being UK nationals. James Healy-Pratt, an aviation partner at Keystone Law, confirmed that proceedings have been issued against Air India, though not yet formally served.
"This is against the backdrop of upcoming confidential negotiations in London," Healy-Pratt noted. "Hopefully the parties will resolve their claims through such dialogue without the need for a trial."
Technical Investigation Findings
Separately, families of four passengers killed in the crash are pursuing legal action against Boeing in the United States, alleging the accident resulted from faulty fuel switches. The lawsuit, filed in September last year, names both Boeing and Honeywell—the manufacturer of the switches—as responsible parties.
An initial investigative report submitted approximately 30 days after the crash revealed critical details. According to the report, three seconds after takeoff, the plane's engine fuel cutoff switches simultaneously flipped from "run" to "cutoff," starving the engines of fuel. The aircraft immediately began losing thrust and descended.
Cockpit voice recorder transcripts captured one pilot asking the other why he cut off the fuel, with the other pilot responding that he had not done so. Less than ten seconds later, both switches returned to the "on" position, but moments afterward, a mayday call was transmitted before the aircraft crashed.
Airline Response and Safety Measures
Air India has not responded to requests for comment regarding these latest settlement developments. In a previous statement from August 2025 concerning Flight 171, the airline stated: "The safety of our passengers, crew and aircraft is our foremost priority. Following the tragic accident involving AI171 in June, we have undertaken a series of proactive measures and conducted comprehensive checks ensuring that every flight continues to meet the highest global standards of safety and customer service."
The airline detailed measures including fleet inspections, safety pauses, operational enhancements, safety protocol revisions, training improvements, and phased resumption of international flights. Boeing has consistently referred media inquiries to Indian authorities, citing the ongoing crash investigation.
As families grapple with their loss and consider these settlement offers, the legal landscape continues to evolve while investigators work to determine the precise causes of one of aviation's recent tragedies.
