July 26, 17:30 hours
UPDATE ON COMPENSATION AND SUPPORT TO FAMILIES
Air India stands in solidarity with the families and those affected by the AI171 accident. We continue to mourn their loss and remain fully committed to providing support during this difficult time.
Over a month ago, Air India started releasing interim payment of Rs 25 lakh to the affected families, to help them meet their immediate financial needs. The interim payment will be adjusted against any final compensation.
Air India has, so far, released the interim compensation to the families of 147 of the 229 deceased passengers and also the 19 who lost their lives at the accident site. In addition, the requisite documents of 52 others have been verified, to whose families the interim compensation will be released progressively.
The Tata Group has also registered ‘The AI-171 Memorial and Welfare Trust’, dedicated to the victims of the unfortunate accident. The Trust has pledged an ex-gratia payment of Rs 1 crore in respect of each of the deceased, and support for rebuilding the B.J. Medical College Hostel infrastructure, which was damaged in the accident.
The Trust will also provide aid and assistance for alleviation of any trauma or distress suffered by the first responders, medical and disaster relief professionals, social workers, and governmental staff who provided invaluable institutional support and service in the aftermath of the accident.
(This is an evolving scenario, further updates will be communicated as additional information becomes available)
July 4, 10:36 hours
CLARIFICATION ON COMPENSATION TO NEXT OF KIN
It has come to our notice that allegations have been made against Air India, claiming that families of the deceased in the AI171 accident are being forced to sign papers disclosing their financial dependency to the deceased, in an attempt to slash compensation payments.
Air India categorically rejects these allegations and refutes them as both unsubstantiated and inaccurate.
Air India has been making considerable efforts to process payment of interim compensation (also referred to as advance compensation) as soon as possible, in order to meet the immediate financial needs of affected family members, with the first payments having been made within days of the accident. However, Air India cannot process these payments in an information vacuum. In order to facilitate payments, Air India has sought basic information to establish family relationships to ensure that the advance payments are received by those entitled to them. Whilst the questionnaire does ask family members to indicate with a “yes” or “no” as to whether they are “financially dependent” on the deceased, Air India believes this is an entirely fair and necessary question in order for us to process payments to those most in need of assistance.
Starting 15 June, Air India established a Facilitation Centre at the Taj Skyline hotel in Ahmedabad, where the questionnaire relating to interim compensation is available. In addition, families were sent communications informing them that the questionnaire is also available over e-mail, in the event families do not wish to make a visit to the Centre. Air India staff are present at the Centre to explain the elements of the questionnaire to family members. There is no requirement for family members to complete the questionnaire at the Centre, and several families have chosen to complete the questionnaire at their convenience and submit it over e-mail. Those families who chose to complete the questionnaire at the Centre were provided with copies of their submissions at their request. In addition to being able to ask questions of the Air India staff at the Centre, families are, of course, free to seek legal advice should they wish to do so.
Air India is aware that families may have completed several other forms and items of paperwork at other locations, such as the hospitals. The forms being filled out at the hospital/morgue are entirely separate and unconnected with compensation. Indeed, some of those forms may have been for official government purposes. Air India has certainly not made any unsolicited visits to families’ homes for the purposes of following up on questionnaires connected to interim compensation, or for any other purpose.
So far, Air India has released interim compensation to 47 families of the passengers and those deceased at the accident site to help them meet their immediate financial needs. The documents relating to a further 55 individuals have also been verified, and interim compensation is being released progressively to their families. We continue to be in dialogue with other families of the passengers and those deceased at the accident site, or their authorised representatives, to release the compensation at the earliest.
Air India, as part of the Tata Group, upholds core values of integrity and responsibility and remains committed to serving the community, especially during challenging times.
In addition to any compensation that will be provided by Air India, the Tata Group has announced a voluntary ex-gratia payment of Rs 1 crore or approximately GBP 85,000 to the families of each of the deceased. A trust with a corpus of around Rs 500 crore or approximately GBP 43 million is being set up to manage and disburse this ex-gratia amount and provide long-term assistance to the families. These families will forever be part of the Tata family. All these efforts are voluntary and in addition to any compensation payable by Air India under law.
We urge the public and all concerned to be cautious of misinformation and misinterpretation of facts to help everyone involved do their job responsibly.
June 22, 10:25 hours
STATEMENT ON INTERIM COMPENSATION AND SUPPORT TO FAMILIES
Air India remains in solidarity with the families who lost their dear ones in the tragic accident on 12 June 2025. Air India and its parent company, Tata Sons, are fully committed to providing all support to them during this difficult time.
A centralised helpdesk, active since 15 June, has been assisting families in processing claims for the interim compensation of ₹25 lakh or approximately GBP 21,500 to the families of each of the deceased and to the survivor, to help address immediate financial needs. This single-window system ensures faster documentation and helps initiate compensation procedures promptly.
The interim compensation began being released from 20 June 2025, with three families having received payments so far, and the remaining claims being processed.
This is in addition to the ₹1 crore or approximately GBP 85,000 support already announced by Tata Sons. Air India has also been reaching out to those who were injured and the families of those who lost their lives on the ground to initiate the compensation process for them.
Since the accident, over 500 volunteers from Air India and 17 other Tata group companies have united to offer heartfelt assistance to everyone affected by the tragedy. Each affected family has been assigned at least one dedicated, trained caregiver from Air India’s Special Assistance team to provide 24/7 support.
The families are also being assisted throughout the hospital processes, including during DNA identification. When the mortal remains are released by the hospital, at least one caregiver accompanies each family to facilitate the transportation as well as funerals, while ensuring the dignity and utmost respect for the deceased and their loved ones. Families are also being provided other comprehensive financial assistance during this difficult time, covering travel, accommodation, medical and funeral expenses, with additional needs addressed promptly.
In recognition of the importance of clear communication at this time, many volunteers are also providing sensitive care to the families in regional languages. To support the mental health of the affected families and/or individuals, a team of trained psychologists and doctors has been deployed in Ahmedabad to offer trauma counselling and psychological support, while medical personnel, including nurses and a pharmacist, address ongoing or emerging health needs.
Two toll-free helpline numbers, established on 12 June, continue to provide information and support to Indian and international callers, addressing any queries or support needs from the families.
We will continue supporting those affected long after the work in Ahmedabad is done for, as our Chairman has said, these families are now Tata families.
Air India and Tata Sons remain steadfast in our commitment to stand by all those affected, ensuring they receive unwavering support, care, and compassion as they navigate this profound loss.
