Nearly eight months after the devastating crash of flight AI171, Air India has moved to formally close the compensation process, making it clear that families accepting the fair and final payout will have to waive any further claims arising out of the accident, sources said on Thursday.

An Air India spokesperson said that following interim payments made earlier, the airline has now calculated and offered final compensation to each affected family in accordance with the applicable legal framework. The airline said the amounts differ based on individual circumstances and have been determined as per established legal principles.

While the carrier did not disclose figures in specific cases, it reiterated that families of the deceased are being offered compensation of over Rs 1.25 crore. The airline said the process has been carried out in a transparent and compassionate manner, with clear communication about the settlement structure and the choices available to family members.

Air India clarified that the full and final settlement being offered is in line with recognised industry and legal standards and includes a release of claims. In effect, acceptance of the amount would bar any future legal claims connected to the crash. The airline also stated that the inclusion of waivers in favour of Boeing and other entities forms part of standard legal practice and is intended to protect Air India’s own interests.

The spokesperson acknowledged that no monetary compensation could substitute the loss of a loved one but said that clarity on final compensation is a significant step for families seeking closure after the tragedy. The airline said it remains committed to supporting all impacted families as they navigate what it described as an extremely difficult period.

The move comes even as some families have approached legal forums in relation to the crash.

In one of the deadliest aviation disasters in India’s recent history, 260 persons, including 241 passengers, lost their lives when Air India’s Boeing 787-8 aircraft operating flight AI171 to London Gatwick crashed shortly after take-off from Ahmedabad on June 12, 2025.

Aircraft Accident Investigation Bureau (AAIB) is investigating the crash. On Wednesday, the Supreme Court directed the Centre to file a brief report outlining the procedural protocol followed so far, after it was informed that AAIB’s probe is nearing completion.

In its preliminary report released on July 12 last year, AAIB said the fuel supply to both engines was cut off within a gap of one second soon after take-off, leading to confusion in the cockpit. The cockpit voice recording, according to the report, captured one pilot asking the other why he had cut off the fuel supply, to which the other pilot replied that he had not done so.