Ahmedabad plane crash: Air India wants liability waiver, offers cash settlement
Times of India | 12 February 2026
KOLKATA: Air India is offering final monetary settlements to the families of those killed or injured in the Ahmedabad air crash in exchange for liability waivers for the airline, the aircraft and engine and electrical systems manufacturers, the Union civil aviation ministry, DGCA, Airports Authority of India, and Ahmedabad International Airport Ltd, the USbased law firm representing over 100 victim’s families has claimed.
Ayush Dubey, case manager of Kansas City-based Chionuma Law Firm, which is representing 103 of the 260 people killed in the June 12, 2025 crash and 67 seriously injured, said the airline is offering cash settlements if families forgo their right to file legal cases against Air India, aircraft manufacturer Boeing, engine manufacturer General Electric, GE Aerospace, Honeywell International Inc., and the Union of India. “Within the last seven days, one family was offered Rs 35 lakh, including Rs 25 lakh previously paid by Air India as interim compensation, as the final settlement. We asked them not to sign. We oppose this document. It asks grieving families to give up all their legal rights while the investigation is still ongoing. The full truth is not known yet, and it is still unclear who is responsible,” Dubey said.
When TOI asked Air India why it had included all these companies, as well as the Union of India, in the indemnity waiver being sought from victim families when the investigation was still underway, an AI spokesperson responded saying “the final amount offered to each family is fair and in accordance with the law, and information about this has been shared in a transparent, compassionate way”, adding that their offer follows recognised industry and legal standards, including provision for the release of claims.
The airline said while it could not discuss specific cases, the amounts offered to each family had been calculated “using the applicable legal framework” and that the amounts differ “depending upon individual circumstances”.
“We have been transparent about the process, and the options open to family members. Air India remains committed to doing everything we can to support every impacted family as they navigate through this difficult process. We wholeheartedly understand that monetary compensation cannot make up for the loss of a loved one. At the same time, getting more clarity about final compensation is an important moment for the families affected by this tragic incident,” the airline said.
TOI spoke to a medical student in Ahmedabad who signed the document as the guardian of his two-and-a-halfmonth-old son in exchange for Rs 3 lakh. His mother-in-law was paid Rs 5 lakh to sign. “My mother-in-law and son exited the building impacted by the crash without major injuries, but she suffers from post-trauma anxiety, while our son has breathing issues. My wife and I had our final year exams round the corner and were grateful that our family survived. We did not know we were giving up all our legal rights and that Boeing was also being absolved when we signed the document in Oct-Nov,” he said.
Ahmedabad-based journalist Kuldip Ishrani, who facilitated the interaction, said scores of families were contacted by the airline to sign the document.
What is most troubling is that apart from protecting itself, the indemnity waiver was an attempt to to block families from filing cases in other jurisdictions against the plane manufacturer, Dubey claimed. One clause in the indemnity document reads: “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.”
Chionuma Law Firm is filing a class action suit against Boeing and others, claiming the accident was caused by electrical failure and not pilot action. The firm specialises in accident-related cases.
In London, several victim families have filed a personal injury lawsuit in the London high court. Some are also suing Boeing in the US, alleging the accident resulted from faulty fuel switches.
While 90% of class action suits are usually settled out of court, in instances where juries have announced verdicts compensation runs into tens of millions of dollars.
Pilots saw this as yet another attempt to shield aircraft and systems manufacturers and others and pin the blame on pilots who could not defend themselves.
“Some injured families are still receiving medical treatment. Their recovery is not finished, and they do not yet understand how much more money may be needed to fully heal. Even then, 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,” Dubey claimed, adding that “a decision this serious should only be made after the full facts are known and families clearly understand what they are giving up”.