According to attorney, the settlement terms not only release Air India from current and future liability, but also extend to manufacturers, component suppliers, aviation operators and even government entities

New Delhi: An attorney representing the families of more than 105 victims of the Air India Flight AI-171 crash has advised them not to sign the airline’s proposed settlement terms and to wait for key investigative data before making any decision.
Attorney Chuck N. Chionuma said families should hold off until the Aircraft Investigation Panel (AIP) data is released, arguing that only then will it be clear who bears responsibility for the disaster and what level of damages may be appropriate.
“My advice is not to sign this, but to wait for the AIP data to be released so we know who the culprits are,” he said. “Then you’ll be able to assess what the real damages are and what you are given before you sign such a document.”
Chionuma warned that the proposed agreement would apply across all jurisdictions where claims might be filed and would require families to indemnify and hold multiple parties harmless, regardless of where proceedings are brought.
According to him, the settlement terms not only release Air India from current and future liability, but also extend to manufacturers, component suppliers, aviation operators and even government entities. He described the scope of indemnity as having “no limit” and criticised a clause requiring families to hold the airline harmless against any future claims.
“Three families have received the proposed release and settlement terms from Air India, and we have advised all of them not to accept it,” he said, adding that it would be unwise to sign away legal rights before the investigation is complete.
On Thursday, Air India announced it had begun the final compensation process for families affected by the crash of Flight AI-171 in Ahmedabad last year. In a statement, the airline acknowledged that no financial sum could make up for the loss of life, but said providing clarity on final compensation marked an important step for grieving relatives.
The carrier said it had already paid interim compensation of ₹25 lakh to the families of those who died. In addition, ex gratia payments of ₹1 crore per deceased person are being processed through the AI-171 Memorial and Welfare Trust established by the Tata Group.
Air India maintained that its final compensation offers are fair, compliant with applicable legal frameworks and calculated individually according to specific circumstances. The payments are structured on a “full and final” basis, in line with standard industry practice, to bring closure to the matter.
Under the proposed agreement, families who accept the final payment must confirm that they will not pursue future claims against Air India or associated parties, including original equipment manufacturers, airports or government agencies. The airline said this provision was necessary to ensure that the settlement is conclusive and to prevent subsequent direct or indirect claims.
Air India added that it is committed to transparent and compassionate communication with affected families. It has advised them to seek independent legal advice before taking a decision and has offered support throughout the process.
Flight AI-171, a Boeing 787-8 aircraft, crashed shortly after take-off from Sardar Vallabhbhai Patel International Airport on 12 June last year. The disaster claimed 260 lives, including 229 passengers, 12 crew members and 19 people on the ground.
Published: 14 Feb 2026, 06:45 am IST
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