Ensuring compensation to crash victims' kin is done fairly: Air India CEO

Net increase in Air India's aircraft fleet will begin from 2027-28 onwards, he added

Air India (A-I) is committed to ensuring that ex-gratia payouts to families affected by the AI171 plane crash in June are processed in a “fair and well managed” manner, its chief executive officer (CEO) and managing director (MD) Campbell Wilson said on Monday. He said that the pace of disbursal depends on information and documentation provided by families, as well as the resolution of any questions over the rightful recipients.

 

Wilson, during a press conference on Monday, added that the airline’s fleet size will remain largely flat until March 2027, with a net increase expected only in 2027-28 (FY28). The firm has 187 planes in its fleet right now, he said.

 

Air India's AI171 flight -- which was heading to London on June 12-- crashed shortly after take-off from Ahmedabad airport, killing 241 people on board and 19 on the ground, with only one survivor. About 81 people were injured on the ground.

 

Wilson said that compensation has already been disbursed to around 70 families. “We have already disbursed compensation to about 70 families. We are in the process of disbursing the compensation to another 50 families. And the rest is in various stages of communication and documentation,” he said.

 

He added that the airline wants to move quickly but must ensure proper validation and clarity. “We very much want to expedite the compensation process but we need to do it in a fair and well-managed process. And that requires some information from the family. It requires some validation…we need to work through this process at the pace at which the recipients are able, comfortable and willing to go,” he added.

 

On the temporary reduction in international flights after the AI171 crash, Wilson said the airline had cut about 15 per cent of its international widebody network, but had reinstated most routes by October 1. “We essentially reinstated nearly everything from the first of October,” he said, adding that Washington DC and Nairobi remain suspended for now. He explained that longer flight times due to Pakistan airspace restrictions, the return of leased aircraft, and the removal of B787s for retrofitting had constrained capacity.

 

On the retrofitting of Air India’s narrowbody aircraft, Wilson said that the upgrade programme is nearly complete. “Presently, about 83 per cent of the narrow body fleet has been upgraded and the 17 aircraft that are yet to be upgraded actually, we had originally planned to retire, but decided to keep because of slow deliveries from Airbus and Boeing. So actually, the initial phase of the narrow body refit is completed, it's just we've added more aircraft to it.”

 

The widebody retrofit programme is also progressing. “The first two of our legacy B787-8 aircraft are presently in Victorville in California, receiving a completely new interior, new in-flight entertainment, Wi-Fi connectivity, and they should come back into service in February of 2026. Thereafter, we will be pushing through two to three aircraft every month. So, the full B787 fleet will be upgraded by mid-2027. By the end of 2026, about two thirds of the B787 fleet will have been upgraded.” He added that these upgraded aircraft will increasingly operate key routes across Europe, Australasia and Southeast Asia through 2026.

 

Responding to questions on whether demand on US routes amid H-1B uncertainties and tariff-linked worries have been hit, he said: “Yes, it has. There are many factors at play here. One is airspace constraint (due to Pakistan airspace ban since Operation Sindoor earlier this year), which leads to additional flying time, which then leads to refuelling and a mid-stop that's required.”

 

He, however, said this certain reduction in demand on India-US flights is temporary. “We’re still very confident in the long-term prospects of the market,” he noted.