Air India Flight AI-171 Crash: Attorney Calls Proposed Settlement 'Problematic', Urges Families To Reject Offer

New Delhi: Attorney Chuck N. Chionuma, representing the families of over 105 victims of the Air India Flight AI-171 crash, advised not to sign the proposed settlement terms offered by the airline, and urged families to wait for the AIP data before making any decisions.

While speaking to ANI, Chionuma said, "My advice is not to sign this, but to wait for the AIP data to be released so we know who the culprits are. Then you'll be able to assess what the real damages are and what you are given before you sign such a document."

"The document applies to every jurisdiction where any claim is brought. It requires the families to indemnify and hold these companies harmless, regardless of where the claim is brought," he added.

The proposed settlement terms require families to release Air India and its parties, including manufacturers, operators and government entities, from all current and future liabilities. Chionuma argue that it is unfair to sign away their rights before the investigation is complete.

He added that some families have already received the proposed settlement terms but were advised not to accept them.

"Three families have received the proposed release and settlement terms from Air India, and we have advised all of them not to accept it. The settlement proposed by Air India is problematic in several respects. It not only releases Air India from current and future liabilities for the deaths of family members, but it also releases practically everyone in the world, including the airline manufacturers, component manufacturers, aviation operators, and even governmental entities. The liability they are indemnifying against has no limit. To make things even worse, the document also goes as far as requiring the families and other parties to hold Air India harmless against any future claims. It is not advisable for anyone to sign these documents," Chionuma told ANI.

On Thursday, Air India announced the initiation of the final compensation process for families affected by the tragic crash of Flight Al-171 in Ahmedabad last year.

In a statement released by the airline, Air India expressed deep understanding that no monetary amount can compensate for the loss of a loved one. However, providing clarity on final compensation represents a significant step for the grieving families.

The airline has already provided initial interim payments of ₹25 lakh to the families of the deceased. Additionally, the process for ex gratia payments of Rs 1 crore per deceased family, funded through the Al-171 Memorial and Welfare Trust established by the Tata Group, is currently underway.

Air India emphasised that the final compensation offers are fair, compliant with applicable legal frameworks, and calculated individually based on specific circumstances. These payments are structured on a "full and final" basis following standard industry practices to bring closure to the matter.

As part of the agreement, families accepting the final amount are required to confirm they will have no future claims against Air India or related parties, including original equipment manufacturers, airports or government agencies. The airline highlighted the importance of this clause to ensure the settlement is truly conclusive and to prevent any subsequent direct or indirect claims. Air India stressed its commitment to transparency and compassion in communications with the families. It has advised them to seek independent legal advice before making a decision and has offered support options throughout the process.

Last year on June 12, Air India flight AI-171, a Boeing 787-8 aircraft, crashed soon after it took off from Ahmedabad's Sardar Vallabhbhai Patel International Airport, killing 260 people, including 229 passengers, 12 crew members, and 19 people on the ground.