Ahmedabad Plane Crash: Know the Legal Implications of Air India Boeing 787 Dreamliner

Introduction

Air India Boeing 787 Dreamliner crashed shortly after takeoff from Sardar Vallabhbhai Patel International Airport in Ahmedabad on 12th June 2025 afternoon, killing 274 people in which 241 are passengers, 33 are on-ground deaths which were likely people present on the BJ Medical College campus in Ahmedabad possibly doctors, students, staff and their families. According to the Directorate General of Civil Aviation (DGCA), there were 242 people on board the craft in which 230 are passengers, 2 pilots and 10 cabin crew members. The financial and legal implications of the Air India Boeing 787 crash is expected to be one of the most complex and costly in Indian aviation history. A high number of casualties, several injuries, loss of property and total destruction of the aircraft, the total compensation and liability exposure may cross 1000 crore. This includes statutory compensation under international conventions, additional damages awarded by courts for pain, suffering and loss of livelihood as well as third party claims for property damage on the ground.

Furthermore, with the involvement of global reinsurers through extensive aviation insurance and reinsurance arrangements, much of this financial burden will be distributed across international insurance markets. Subrogation actions may also arise if investigations reveal contributory negligence by third parties such as aircraft manufacturers, maintenance providers or airport authorities. This multi-layered legal and financial structure reflects the highly regulated, high- strikes nature of modern aviation liability.

International Law: The Montreal Convention (1999)

India, being a signatory to The Montreal Convention, has incorporated it into domestic law through the Carriage by Air Act,1972. The Montreal Convention establishes a dual framework of liability:

Firstly, the Convention imposes strict liability on the carrier up to a limit of 113,100 Special Drawing Rights (SDR) per passenger, which operates automatically upon proof of death or injury. Beyond this limit, the carrier may still be held liable if negligence, fault or wrongful act is established.

The SDR is not a currency but a composite unit of value maintained by the International Monetary Fund (IMF). Its daily values are derived from a basket of major world currencies. As on June 14,2025, one SDR is approximately equivalent to Rs 110. Therefore, the strict liability amount of 113,100 SDR converts to approximately Rs 1.24 crore per deceased passenger. This figure fluctuates marginally with daily exchange rate adjustment.

Applicable Indian Laws

Apart from the Montreal Convention, several Indian laws may simultaneously come into action, which includes:

• Carriage by Air Act, 1972: It implements the international conventions governing international carriage by air, including the Warsaw Convention of 1929, the Hague Protocol of 1955 and the Montreal Convention of 1999. It also extends the application of these conventions to non- international carriage by air in India.

  
  

• The Fatal Accidents Act, 1855: The Fatal Accidents Act, 1855 provides legal remedies for dependents of victims who die in incidents like the Air India plane crash. It allows legal heirs (such as spouse, children, or parents) to claim compensation for pecuniary loss resulting from the deceased's death caused by wrongful act, neglect, or default of the airline or related parties. The Act recognizes the loss of financial support, companionship, and dependency suffered by the family. Claims under this Act can proceed along with other legal remedies under contract, consumer protection, tort, and aviation laws, ensuring comprehensive compensation for the victim’s dependents.

  
  

• The Consumer Protection Act, 2019: As per section 2(7) of the Act, air passengers are “consumers” since they hire services of the airline for consideration and Air travels falls under “service” as per section 2(42) of the Act. It allows Air India crash victims or their families to claim compensation for deficiency in service, product liability and unfair trade practices offers speedy redressal through consumer commissions, supplementing aviation laws. Claims may target airlines, manufacturers or service providers for negligence or defects causing the crash.

  
  

• The Indian Contract Act,1872: It applies to Air India plane crash as buying a flight ticket creates a contract of carriage. The airline has an implied duty to provide safe transportation. Failure due to negligence, technical faults or maintenance lapses constitutes breach of contract. Victims or their families can claim compensation for losses under Section 73, which covers damages from breach. Implied terms like safety, pilot competence, and proper maintenance are legally enforceable even if not expressly stated. Air India may invoke force majeure as a defense in rare, uncontrollable situations. These remedies operate alongside consumer protection, tort, and aviation laws.

• The Law of Torts: It is for possible product liability claims against manufacturers such as Boeing or engine suppliers like General Electric.

The Legal Claim by Families

For families intending to pursue full and fair compensation, a structured legal claim becomes essential. The following framework outlines the path they must follow:

(a)   Cause title: Claims may be filed before appropriate civil courts or consumer commissions, identifying Air India, Tata Sons, the Director General of Civil Aviation, the Ministry of Civil Aviation, Boeing, General Electric, and other potentially responsible parties.

(b)   Jurisdiction: Since the crash occurred within Indian territory on an international flight, both international and domestic laws apply concurrently.

(c)    Legal representatives: The claims must be filed by legal heirs, successors, or court-appointed representatives of the deceased, supported by succession certificates or d letters of administration.

(d)  Reliefs claimed: These include:

1. Strict liability compensation of approximately ₹1.24 crore (113,100 SDR).

2. Additional damages if negligence, mechanical failure, or human error can be proven.

3. Pecuniary losses for loss of income, dependency, and consortium. Funeral expenses and mental anguish.

4. Legal costs and interest.

(e)   Documentary proof: Essential documents include death certificates, proof of relationship, income statements of the deceased, flight tickets, investigative reports from DGCA (Directorate the General of Civil Aviation), AAIB (Aircraft Accident Investigation Bureau), and NTSB (National Transportation Safety Board), and copies of the ex-gratia payment orders.

(f)   Limitation periods: Under the Montreal Convention, the legal claim must be initiated within two years from the date the aircraft was scheduled to arrive or actually arrived, whichever is later. 

Tata Group Announcement

Just after the crash, Tata Group, the owner of Air India, announced an interim compensation of ₹1 crore to the families of each deceased passenger. This announcement was made without prejudice to the legal rights of the victims' families and did not amount to any admission of liability or fault by the airline. The decision to pay ₹1 crore seems to have been driven by three key reasons. First, it allows the families to immediately access financial support to handle funeral arrangements, short-term financial needs, and related expenses. Second, while detailed investigations are still underway, it helps Air India manage its immediate financial obligations without committing to final liabilities. Third, this interim amount sets a temporary benchmark but still preserves the legal right of the families to seek full compensation as per the Montreal Convention.

From legal perspective, this ₹1 crore amount is considered an ex-gratia payment which means it neither fulfils nor cancels out Air India’s legal responsibility to compensate under statutory obligations. Hence, the families can still claim further compensation up to the limit of 113,100 SDR, and even beyond that if they can establish Air India’s negligence with sufficient evidence.

The Legal Road Ahead

The families of the victims need to safeguard their right to receive complete compensation. While accepting the ₹1 crore interim payment offered by Tata Group, they must ensure that this does not stop them from filing detailed legal claims which capture the full scope of compensation under statutory obligations and any fault-based liabilities. It is essential for them to pursue remedies under both the Montreal Convention and applicable Indian laws, making sure that no possible ground for compensation is unintentionally overlooked or surrendered.

Conclusion

The Ahmedabad Air India Boeing 787 crash presents one of the most challenging legal and financial cases in Indian aviation history. Multiple laws apply simultaneously, including international conventions like the Montreal Convention and domestic statutes such as the Fatal Accidents Act, Consumer Protection Act, Indian Contract Act, and tort principles, providing families with a comprehensive framework to seek justice and full compensation. While Tata Group’s interim ex-gratia payment of ₹1 crore offers short-term financial relief, it does not limit the legal rights of victims’ families to pursue full statutory and fault-based claims. The outcome will largely depend on detailed investigations by national and international agencies, which may uncover negligence or technical failures, potentially extending liability to manufacturers, maintenance providers or regulatory authorities. ‘Victims’ families must act diligently, filing timely claims supported by thorough documentation, to ensure they receive the maximum lawful compensation. In this highly regulated and multilayered legal environment, pursuing all available legal avenues is crucial to secure both justice and adequate financial restitution.

~Authored by Prity Kumari

2nd year B.A.LL.B student from

Central University of South Bihar