Tata Approves ₹500 Cr Trust for AI171 Crash Victims
Following the Air India Flight AI171 crash, Tata Sons chairman N Chandrasekaran has taken direct oversight of Air India’s daily operations. Tata, which acquired Air India in January 2022, is now executing a 5-year transformation plan.
In its first board meeting after the tragedy, Tata Sons approved the creation of a ₹500 crore public charitable trust to support families of the 275 victims, including 241 onboard and 19 on the ground, who died after the aircraft crashed shortly after takeoff from Ahmedabad on June 12.
Breakdown of the Trust Fund:
- ₹300 crore for families of the deceased, including doctors and passengers.
- ₹50 crore for treatment of injured, primarily BJ Medical College staff.
- ₹50 crore for rebuilding the damaged hostel block of the college.
- ₹100 crore for long-term support to the victims' families.
This was India's deadliest aviation disaster since the 1996 Charkhi Dadri mid-air collision and the first fatal crash involving Air India since 1985, as well as the first major crash involving a Boeing 787 Dreamliner.
The trust will be formally registered by the end of July and chaired by N Chandrasekaran. It will also include independent and non-Tata trustees. The initiative is led by Tata Motors Group CFO P.B. Balaji.
Additional Compensation:
In addition to the trust, Tata Sons had earlier announced ₹1.25 crore ex-gratia per deceased family. These payments will be streamlined through the trust.
Insurance and Financial Impact:
Insurance claims may reach $475 million (approx. ₹4,000 crore) as 50 foreign nationals were also onboard. The aircraft was insured under Tata AIG General Insurance and reinsured globally to limit direct impact on Tata.
Tata Sons and Singapore Airlines have jointly invested ₹9,558 crore in Air India in FY 2024-25, with Tata's share at ₹3,224.82 crore and SIA contributing ₹6,333.18 crore. A significant capital infusion of ₹4,306 crore was made in March 2025 alone.
This initiative echoes Tata’s previous relief efforts, such as the Taj Public Welfare Trust formed after the 26/11 Mumbai attacks.