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A tragic incident recently occurred where an Air India Flight 171, a Boeing 787 Dreamliner, after just taking off from Ahmedabad got crashed within a few minutes. In accordance with the Data from the Airport Authority, the last recorded altitude of the plane was at 625 feet off the ground, just immediately after takeoff. It flew just 2 km more.
The flight was carrying 230 passengers and 12 crew members. However, except for one passenger, all the passengers and the crew members died on the spot. Moreover, the flight crashed into the B.J. Medical College Hostel’s mess and, as per the report, killed around 19 people and injured at least 60 more on the ground. The flight was a scheduled international passenger flight operated by Air India from Ahmedabad Airport in India to London Gatwick Airport in the United Kingdom. After the 2010 air crash incident wherein the 2-year-old aircraft had crashed outside Mangalore airport in Karnataka on May 22, killing 158 people when it burst into flames after overshooting a tabletop runway and plunging into a nearby forest. This is the tragic incident wherein the Air India Flight 171 crashed and killed around 300 people. The Air India Flight 171 crashed in the B.J. Medical College Hostel’s mess, causing damage to the properties nearby, approximately 2 square kilometres. This event has reportedly triggered what could be India’s largest aviation liability, exceeding 1,000 crores. In this article, we will discuss and try to understand what kinds of liability arise because of this plane crash on the airlines and the country, and under which law.
LAWS OF INDIA GOVERNING THE AIRPLANE INCIDENT
The Aircraft (Investigation of Accidents and Incidents) Rules, 2012, were notified by the Central Government of India through a Gazette Notification. This notification was published as G.S.R. 536(E) on July 5, 2012. These rules were formulated based on the ICAO (International Civil Aviation Organisation) SARPs (Standards and Recommended Practices) and the Indian Civil Aviation scenario. The purpose of these rules was to establish a framework for investigating aircraft accidents and incidents, which led to the establishment of the Aircraft Accident Investigation Bureau (AAIB).
As per the Definition of the Accident in the Act, it refers to an event related to the operation of a manned or unmanned aircraft occurring between boarding and disembarkation (for manned) or from readiness to engine shutdown (for unmanned), resulting in either:
- fatal or serious injury caused by being in or coming into contact with the aircraft or jet blast (excluding natural causes, self-inflicted harm, assaults, or injuries to hidden stowaways);
- aircraft damage or structural failure affecting performance or safety, requiring major repair or replacement (excluding minor or localized damage to components like engines, propellers, tires, or panels); or
- the aircraft being missing or completely inaccessible.
In these types of cases of aircraft accidents, the airline is primarily liable for compensating victims, and the amount can vary. For international flights, the Montreal Convention sets a minimum compensation of around 1.4 crore per passenger, while domestic flights are also subject to this convention’s standards. However, if negligence on the airline’s part is proven, the compensation can exceed this capped amount. The Aircraft (Investigation of Accidents and Incidents) Rules, 2012, and subsequent amendments primarily focus on the investigation process and don’t directly dictate compensation amounts, but they do establish the framework for investigation and reporting.
The Air India Flight 171 took off from Ahmedabad Airport in India and was going to London Gatwick Airport in the United Kingdom, which means it was an International flight. Therefore, the liability would be covered under an International Convention. In this case, the damage caused to the passengers will be governed under the Montreal Convention, 1999, also known as the ‘Convention for the Unification of Certain Rules for International Carriage by Air’.
Montreal Convention, 1999
India was the 91st country to ratify the Montreal Convention 1999. The Convention was effective for India on 30th June 2009, wherein the death of a passenger, there is a strict liability of 100,000 SDRs.
As per Article 17, the liability of an air carrier is limited under specific conditions. The carrier is liable for a passenger’s death or bodily injury only if the accident occurred on board the aircraft or during embarking or disembarking operations. As per Article 21, the air carrier cannot exclude or limit its liability for passenger death or injury damages up to 100,000 Special Drawing Rights (SDRs) per passenger. For damages exceeding this amount, the carrier is not liable if it proves that the harm was not due to its own negligence or that of its employees or agents, or that the damage was entirely caused by a third party’s negligence or wrongful act.
The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries. As per Article 24, the SDR amounts are reviewed and adjusted every 5 years for inflation. Thereafter, the current SDR amount is updated by the International Civil Aviation Organisation in the month of October,2024. As per the reports, one SDR is equal to 122 INR.
The Kerala High Court division bench in the case of National Aviation Company Of India Ltd vs S.Abdul Salam dated 25.10.2011 has held that while an air carrier’s liability for passenger death or injury in an air accident is unlimited, only actual damages proven by the victim or claimants are payable, either through settlement or by a competent civil court. The law does not mandate any minimum compensation under Rule 21(1) or any other provision, although carriers are encouraged to offer reasonable ex gratia payments to avoid prolonged litigation. In the absence of a settlement, claimants must establish the extent of damages in court. The carrier may defend itself by proving contributory negligence on the part of the passenger. For claims exceeding the threshold, the carrier can escape additional liability only by proving that the accident was not due to its own or its agents’ negligence, or was solely caused by a third party, failing.
Who is to claim compensation
The legal heirs or dependents of the deceased can file a claim for compensation. In case of injury, the passenger themselves can do so. The amount depends on the proof of damage or loss (for claims beyond the strict liability limit).
As per Article 33, an action for damages may be initiated, at the plaintiff’s choice, in the territory of a State Party either where the carrier is domiciled, has its principal place of business, where the contract was made through a business location, or at the place of destination. In cases involving death or injury of a passenger, the plaintiff may also sue in the State where the passenger had their principal and permanent residence at the time of the accident, provided the carrier operates services to or from that State under its own or a partner carrier’s aircraft, and conducts its business from premises it owns or leases.
CONCLUSION
The tragic crash of Air India Flight 171, resulting in nearly 300 fatalities and massive property damage, marks one of the most catastrophic aviation disasters in India’s history, raising critical questions about airline accountability and systemic safety failures. Governed by the Montreal Convention, 1999, and India’s Aircraft (Investigation of Accidents and Incidents) Rules, 2012, the legal framework mandates strict liability up to 100,000 SDRs per passenger, with scope for higher compensation if negligence is proven. Legal heirs of the deceased can seek damages through various jurisdictions, though claims beyond the fixed threshold require evidence and may involve prolonged litigation. The crash not only exposes the country to liabilities exceeding ₹1,000 crore but also highlights the urgent need for stronger aviation safety standards, accountability mechanisms, and crisis response systems to prevent such devastating incidents in the future.
Author: Mr Akhand Pratap Singh Chauhan, Partner
Co-Author: Mr. Sachin Sharma, Assessment Intern