**Air India Disburses ₹60 Crore in Compensation Following Tragic Crash**
Air India has allocated ₹60 crore in interim compensation to 230 of the 248 victims affected by the tragic crash on June 12, as confirmed by the airline’s CEO, Campbell Wilson. This compensation update comes during a challenging year for the Tata-backed airline, which has faced significant operational hurdles alongside the aftermath of the accident.
In addition to Air India’s compensation, family members of 70 victims have received ₹1 crore each from a trust established by the Tata Group to support those impacted by the country’s worst civilian air disaster in over a decade. The families of another 50 victims are in the process of receiving similar compensation.
Wilson emphasized the airline’s ongoing commitment to supporting the families affected by the tragedy, stating, “We continue to reach out to the families of those affected…our commitment to those who have had a loss will continue for as long as it takes.”
The airline is also grappling with the financial repercussions of a neighboring country’s airspace closure, which has forced Air India to reroute flights over the Arabian Sea. Wilson noted that this closure could result in losses of up to ₹4,000 crore if it persists for a year.
**Fleet Modernization Challenges**
Air India is currently undergoing a significant fleet modernization program, which includes refurbishing existing aircraft with new seating and entertainment systems. However, Wilson acknowledged that supply chain constraints have delayed this initiative, pushing the expected completion date from 2027 to 2028. He described the supply chain as “constrained,” affecting the availability of seats, cabin components, and aircraft across the industry.
“This is a five-year transformation program for a reason; it cannot and would never have been done overnight,” Wilson explained. He added that while the airline aims to refit all legacy aircraft within the five-year period, some models may extend into the sixth year.
As part of this modernization effort, Air India had initially planned to retire 17 older narrow-body aircraft, but due to delivery delays, these planes will be reintroduced into the fleet. The turnaround for wide-body aircraft has proven to be more complex, with the first two 787-8s currently undergoing complete interior renovations in Victorville, California, expected to return to service by February 2026.
In summary, Air India is navigating a tumultuous period marked by a tragic accident and operational challenges while striving to modernize its fleet and support the families affected by the crash.
**FAQ**
**What compensation has Air India provided to crash victims?**
Air India has disbursed ₹60 crore in interim compensation to 230 victims of the June 12 crash, with additional support from the Tata Group for the families of the deceased.