New Delhi, July 26: Air India on Saturday issued a formal update on its compensation measures and welfare initiatives for the victims' families affected by the AI171 flight crash incident. The airline reaffirmed its commitment to standing with the grieving families and supporting them through ongoing financial and emotional challenges.
Compensation Update
More than a month since the accident, Air India has begun disbursing interim payments of ₹25 lakh to the families of the deceased to help meet immediate financial needs. These interim payments will be adjusted against the final compensation amounts, once determined.
Interim compensation has been released to the families of 147 out of the 229 deceased passengers, as well as the families of 19 individuals who died at the accident site.
The airline also confirmed that document verification for 52 additional families has been completed and interim payments will be made to them progressively in the coming days.
Memorial and Welfare Trust
The Tata Group, which owns Air India, has established a special welfare initiative named ‘The AI-171 Memorial and Welfare Trust’ to honour the victims and extend long-term support.
Key initiatives under the Trust include:
An ex-gratia payment of ₹1 crore to the family of each deceased individual.
Rebuilding of the B.J. Medical College Hostel infrastructure, which was significantly damaged in the accident.
Support for first responders, medical staff, disaster relief teams, social workers and government employees who played a vital role in rescue and recovery operations during and after the incident.
A Message of Solidarity
In its official statement, Air India said:
"We continue to mourn their loss and remain fully committed to providing support during this difficult time."
The airline has been working in close coordination with local authorities and community representatives to ensure that the compensation process is smooth and respectful. Psychological support and counseling services have also been made available to affected families.

Background
The AI171 accident, one of the gravest aviation tragedies in recent Indian history, resulted in the loss of 229 passengers and multiple fatalities on the ground. Investigations into the causes of the crash are ongoing.