DELHI— Air India (AI) has offered additional compensation to families affected by last year’s fatal Boeing 787-8 crash, asking them to waive their legal rights in exchange for a final settlement. The London-bound aircraft departed from Ahmedabad’s Sardar Vallabhbhai Patel International Airport (AMD) before crashing shortly after takeoff on 12 June 2025.
The flight was headed to London Gatwick Airport (LGW) with 242 people on board when it went down, killing 241 passengers and crew and 19 people on the ground. Now, as investigations and multiple lawsuits continue, families are being offered to sign indemnity agreements in return for payments reportedly starting at Rs1 million, equivalent to about £8,000.
Air India Offers £8,000 Settlement
According to legal representatives handling claims for more than 130 families, Air India has presented documents requiring relatives to “irrevocably and forever release” the airline and related parties from future legal claims.
The compensation offered under this additional settlement reportedly ranges from Rs 1 million to Rs 2 million, depending on the case.
This offer follows earlier compensation announcements. Air India had initially committed Rs 2.5 million per deceased passenger, while its parent company, Tata Group, pledged an additional Rs 10 million per victim.
Lawyers representing several families argue that the new indemnity document seeks to limit participation in ongoing and future lawsuits. They state that the investigation into the cause of the crash remains incomplete, and key findings have yet to be finalized.
Ongoing Legal Action
Multiple lawsuits linked to the crash are proceeding in different jurisdictions.
According to The Independent, in the United Kingdom, families of several of the 53 British nationals who died have initiated personal injury proceedings in the High Court in London.
Legal counsel involved in the UK cases has confirmed that court proceedings have been issued against Air India, though formal service procedures remain ongoing. Confidential settlement discussions are expected, and both sides may attempt resolution before a full trial.
The same source also reported that families of four victims have filed a lawsuit in the United States, albeit separately:
The lawsuit, filed in September last year, blames Boeing and Honeywell – the company that made the switches – for the crash. The lawsuit was filed months after an initial investigative report, submitted about 30 days after the crash in line with international regulations..
Crash Investigation Update
An initial investigative report indicated that seconds after takeoff, both engine fuel cutoff switches moved from “run” to “cutoff,” leading to a sudden loss of thrust. Cockpit voice recordings reportedly captured confusion between the pilots regarding the switch positions.
Although the switches were returned to the “run” position within seconds, the aircraft failed to regain sufficient power. One pilot issued a mayday call before the aircraft crashed into a residential medical college hostel, triggering a fire.
The final accident report has not yet been released. Authorities continue to examine technical, mechanical, and human factors associated with the incident.
Air India has stated that it is handling compensation in accordance with applicable laws. The airline maintains that it remains committed to supporting affected families and has implemented fleet inspections, safety reviews, and operational enhancements following the accident.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News
