Ahmedabad plane crash: Why Air India, Boeing may face steep liabilities and compensation claims

Air India's tragic plane crash last week involving its 787 Dreamliner en route from Ahmedabad to London (Gatwick) left 241 people on board and roughly 30 people on ground dead. 

While the Aircraft Accident Investigation Bureau will probe the crash, and a committee was also set up by the Union government to review the crash, aviation law firms are also now conducting their own independent investigation into the incident.

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Following the crash, Tata Sons has already announced a compensation of ₹1 crore for families of the crash victims, as well as the sole survivor in the crash. 

Air India has also announced an interim payment of ₹25 lakhs. However, the final compensation could well be higher, in keeping with the Montreal Convention. 

Also, for the airline as well as the plane manufacturer Boeing, liabilities could exceed significantly, should they be found negligent under international law.

London-based Keystone Law is already advising families of those who died in the crash. Keystone noted that its international team has been joined by top aviation claimant John Kimbell KC, along with former US Navy aviator and highly experienced aviation attorney Daniel Barks in Virginia (where Boeing is headquartered).

"We have also retained a former RAF fast jet and hugely experienced Boeing captain, to assist in our independent technical investigation," Keystone said, in a statement.

The team will also review recent actions by Air India's lead insurer in relation to early offers of financial settlement and the obligations of Air India under international law to provide advanced payments to all next of kin.

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"Families who have lost loved ones in this tragedy should exercise caution when considering early financial settlement offers from insurers," the law firm said.

At this sensitive time, no family should be placed under any pressure, especially in relation to financial settlements, it further added.

The Montreal Convention (1999) established airline liability in the case of death or injury to passengers, as well as in cases of delay, damage or loss of baggage and cargo. 

The Convention originally provided for 100,000 special drawing rights (SDR) for each passenger's death, which was increased to 151,880 SDRs last year. The SDR is an international reserve asset created by the IMF. One SDR is valued at around ₹118-120. Based on this, the value of compensation would rise to about ₹1.80 crore.

Of the passengers who died in the crash, 181 were Indians, 53 were British, seven were Portugese and one was Canadian. 

At least some of these families could file cases against the airline in their home countries and seek higher compensation. British nationals could also file claims under the Tort Law in the UK. Tort Law is an area of civil law applied in situations where a person's wrongful conduct may have harmed another. If any such cases go against the airline, its liabilities could rise significantly.

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The liabilities may not end at Air India only. Should investigation reveal that the crash happened due to any fault in the Boeing 787 Dreamliner aircraft, cases could be filed against the plane manufacturer too. The exact cause of what caused the crash is still unknown and could be long while before investigations are fully completed.

The legal process could also be long and cumbersome. The case filed in the Supreme Court by families of some victims of the 2020 Air India Express crash in Kozhikode—seeking enhanced compensation—is still pending, reported Bar and Bench.

In 2020, a flight operated by Air India Express (state-owned at the time) had skidded off the runway at the Kozhikode airport while landing, resulting in at least 18 casualties.

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