Air India Releases Compensation To 166 Families of AI171 Crash—Deets Inside!

Airline Begins Payouts for Victims of Tragic Ahmedabad Accident. Get the Latest on Financial Aid and Support for Affected Families

July 27, 2025: On Saturday, Air India said that it had given interim insurance relief payments to the families of 166 people who died in the tragic Ahmedabad plane crash last month. The airline also said that payments are being made to the families of 52 more victims, with the goal of giving them quick financial help during this hard time.

Air India is paying compensation to 166 people who were hurt in the Ahmedabad crash. Payments are also being made to 52 more people.
The Boeing 787-8 Dreamliner that crashed on June 12, 2025, as Air India flight AI171 was one of the worst air disasters in India in decades. There were a total of 260 deaths in the accident, including 241 on board (229 passengers and 12 crew members, with only one survivor) and 19 on the ground.

Air India said that it has given an interim compensation amount of ₹25 lakh to the families of 147 passengers who died and 19 people who died at the accident site, for a total of 166. The airline repeated its promise to help those affected, saying, “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.” This temporary payment will be deducted from any final compensation that is decided later.

Also, the necessary paperwork for 52 more families has been checked, and their interim payments will be sent out in stages.

The Tata Group, which owns Air India, has also set up “The AI-171 Memorial and Welfare Trust.” This trust has promised to pay ₹1 crore to each person who died. The trust is not only giving money, but it is also working to help rebuild the BJ Medical College Hostel’s infrastructure, which was badly damaged in the crash. It will also help first responders, healthcare workers, disaster relief teams, social workers, and government workers who played a key role in the aftermath, dealing with any trauma or stress they may have felt.

The Aircraft Accident Investigation Bureau (AAIB) is looking into the crash right now. A preliminary report says that both engine fuel control switches went from “RUN” to “CUTOFF” shortly after takeoff. The investigation is still going on, and veteran pilot Captain RS Sandhu has recently joined the team as a domain expert.