Air India is offering additional settlements to families of Ahmedabad crash victims in exchange for waiving legal rights against the airline and Boeing. Learn more.

Air India has reportedly offered additional cash settlements to families of those who died in the June 12 Ahmedabad plane crash in exchange for giving up their right to take legal action against the airline and aircraft manufacturer Boeing.
Following the crash, Air India had announced an interim compensation of ₹25 lakh (₹2.5 million) per victim. In addition, the Tata Group had pledged ₹1 crore (₹10 million) to each family that lost a loved one in the tragedy.
According to a report by The Independent, the airline is now offering an additional settlement amount ranging between ₹10 lakh and ₹20 lakh to families. However, this payment would be made only if families sign a legal document agreeing to “irrevocably and forever release” their right to file lawsuits against Air India and Boeing.
The indemnity document reportedly states that the agreement would remain legally binding in any country or jurisdiction, regardless of where a case may be filed in the future.
Legal representatives of some victims’ families have raised concerns over this move. Ayush Dubey, a case manager at Chionuma Law, told The Times of India that one family was recently offered ₹35 lakh as a final settlement, including the ₹25 lakh already paid. The law firm, which represents 103 of the 260 people who died and 67 injured victims, has advised families not to sign the document.
According to Dubey, asking families to waive their legal rights while the investigation is still ongoing is unfair, as the full facts of the crash and responsibility for it have not yet been established.
The investigation into the Ahmedabad crash has not yet concluded. A preliminary report released by India’s Aircraft Accident Investigation Bureau (AAIB) about a month after the accident suggested that pilot error may have played a role.
The report stated that both fuel control switches on the Boeing 787-8 moved from “run” to “cut-off” almost at the same time. One pilot was heard asking the other why he had cut off the fuel, to which the other reportedly replied that he had not done so.
On a Boeing 787 Dreamliner, the fuel switch must be lifted before it can be moved between “run” and “cut-off.” This design feature is meant to prevent accidental engine shutdown.
However, new developments have raised fresh questions. Earlier this month, another Air India flight from London to Bengaluru involving the same type of aircraft faced a technical issue during pre-flight checks. On flight AI-132, one of the fuel switches reportedly moved from “run” to “cut-off” twice without being lifted, which should not normally happen.
Although the switch did not malfunction a third time and the flight eventually departed, the aircraft was grounded after landing in Bengaluru. This incident has cast doubt on the earlier assumption that the Ahmedabad crash was solely due to manual pilot action.
Several families of victims based in London have already filed personal injury lawsuits against Air India. In addition, the families of four passengers have reportedly filed cases against Boeing and Honeywell, the manufacturer of the fuel switches, holding them responsible for the accident.
With the investigation still underway and legal proceedings beginning in different countries, the final conclusions about the cause of the crash and accountability remain to be determined.
The developments highlight the complex legal and technical questions that continue to surround one of India’s worst aviation disasters in recent history.
Flight AI 171, which was travelling from Ahmedabad to London, crashed shortly after take-off last year. Of the 242 people on board, only one survived, making it one of the deadliest aviation accidents in recent years. The aircraft also crashed into a medical college hostel, killing 19 people on the ground and injuring several others.
The aircraft involved was a Boeing 787-8 Dreamliner. Reports have stated that the plane had a history of technical issues before the accident.
Published: 12 Feb 2026, 02:28 pm IST
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