Air India asks crash victims’ families to give up right to sue in exchange for £8,000 settlement

Air India has been offering cash settlements to the families of victims of last year’s devastating Ahmedabad plane crash if they forego their rights to file legal cases against the airline and manufacturer, The Independent has learned.

The London-bound Boeing 787-8 Dreamliner had 242 people on board when it crashed moments after taking off on 12 June, hitting a medical college hostel and erupting in a fireball.

Only one passenger, Viswashkumar Ramesh, survived the crash, while another 19 people were killed on the ground.

Air India announced an initial compensation payout of Rs2.5m (£20,215) to the families of each of those who died in the months after the crash, while the airline's owner, Tata Group, pledged to add another Rs10m (£80,850).

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While the official investigation into the crash is ongoing, Air India and Boeing are facing a litany of lawsuits alleging safety lapses and demanding accountability for what happened. Several of these suits have been filed in the British courts. Of those who died, 53 were UK nationals.

Now, according to the legal team representing 130 of the victims’ families, Air India has been offering them an extra, final payment of Rs1m (£8,085) if they will sign an indemnity document giving up the right to take part in the suits.

The families are being asked to “irrevocably and forever release” any right to sue or make claims, now or in the future, in relation to the crash, and to protect the other side from all legal responsibility linked to the incident, the document seen byThe Independent reads.

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“We the Releasors agree that all the indemnities contained herein shall remain fully binding, effective and enforceable irrespective of the forum, place, country or jurisdiction in which any such claim demand, action or proceeding is brought or pursued,” one of the clauses reads.

Ayush Dubey, the case manager at Chionuma Law, told The Independent: “We oppose this document. It asks families to give up all their legal rights against every party while the investigation is still ongoing. The full facts are not known yet, and it is not clear who is responsible.

“Some injured families are still under medical treatment, and their treatment is not even completed, yet they are being asked to give up all future claims. This is unfair.

“Families should not be pressured to sign away their rights before the investigation is complete. Any decision like this should only be made after the truth is known and families fully understand what they are giving up,” he said.

In London, several families of the victims have filed a personal injury lawsuit at the London High Court. James Healy-Pratt, an aviation partner at Keystone Law, toldThe Independent that High Court proceedings have been issued against Air India, but they have not yet been formally served on them.

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“This is against the backdrop of upcoming confidential negotiations in London. Hopefully, the parties will resolve their claims through such dialogue without the need for a trial in the King’s Bench Division of the London High Court,” he added.

Separately, the families of four passengers killed in the crash are suing Boeing in the US, alleging that the accident resulted from faulty fuel switches. 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, claimed that three seconds after taking off, the plane’s engines’ fuel cutoff switches almost simultaneously flipped from “run” to “cutoff”, starving the engines of fuel.

The aircraft immediately began to lose thrust and sank down. One pilot could be heard on the cockpit voice recorder asking the other why he cut off the fuel. “The other pilot responded that he did not do so,” the report said. The report also noted that an auxiliary power unit, intended to provide power to the aircraft in the event of engine failure, deployed automatically.

Less than 10 seconds later, both switches were returned to the “on” position. Moments afterwards, one of the two pilots transmitted a mayday call, after which the aircraft crashed.

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Air India did not immediately respond to a request for comment on the latest developments. In its last statement about Flight 171 in August 2025, the airline said: “The safety of our passengers, crew and aircraft is our foremost priority. Following the tragic accident involving AI171 in June, we have undertaken a series of proactive measures and conducted comprehensive checks, ensuring that every flight continues to meet the highest global standards of safety and customer service.

“The measures included fleet inspections, safety pause and operational enhancements, safety protocols and training, and phased resumption of international flights, among others.”

The Independent has reached out to Boeing for comment. It has previously referred media inquiries to the Indian authorities, citing the ongoing crash investigation.