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Air India announces additional Rs 25 lakh compensation

This interim payment is in addition to the Rs 1 crore compensation already announced by the parent company, Tata Sons

ENS Economic Bureau

Air India said on Saturday that it will provide an interim payment of Rs 25 lakh to the families of the deceased and survivors of the Ahmedabad plane crash. This interim payment is in addition to the Rs 1 crore compensation already announced by the parent company, Tata Sons.

“To provide immediate financial support, Air India will be making an interim payment of Rs 25 lakh, or approximately 21,000 GBP to each of the families of the deceased and also to the survivor. This is in addition to the 1 crore rupees, or approximately 85,000 GBP already committed by Tata Sons,” said Air India Chief Executive Officer and Managing Director Campbell Wilson. 

The crash of Air India flight, a Boeing 787-8 Dreamliner bound for London Gatwick, shortly after takeoff from Ahmedabad on Thursday afternoon is set to place a huge financial burden on Air India. 

Under the international Montreal Convention, the airline is liable to pay a compensation amounting to 151,880 Special Drawing Rights (SDRs) per deceased passenger. This translates to approximately Rs 1.8 crore at current exchange rates to the next of kin.

Wilson stated that the process of reuniting next of kin with their loved ones and personal effects has begun. He added that 

Air India is also in the process of completing precautionary safety checks on Boeing 787 aircraft, as directed by our regulator, the DGCA. 

“We will complete all checks within the timelines prescribed by the regulator. As has been confirmed by the authorities, the aircraft's data recorder has been recovered, which will form part of the official investigation, and Air India continues to fully cooperate with these investigations,” he said. 

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