Tata Sons Pledges Rs 1 Crore Compensation per Victim After Air India Tragedy
- Tata Sons held its first board meeting after the Air India AI-171 crash, with Chairman N Chandrasekaran updating on relief efforts and assuming direct control of airline operations.
- The group announced a Rs 1 crore compensation for the next of kin of each victim, reaffirming its commitment to support affected families.
- Tata Sons and Singapore Airlines infused Rs 9,558 crore into Air India in FY 2024-25, as part of a larger transformation and post-merger strategy with Vistara.
Tata Sons convened its first board meeting following the tragic crash of Air India flight AI-171 in Ahmedabad, which resulted in the loss of 241 passengers and crew members. The Boeing Dreamliner, en route to London Gatwick, crashed shortly after take-off on June 12, claiming at least 270 lives in total, with only one survivor.
The nine-member Tata Sons board, which oversees over 100 companies in the Tata Group, met to review the group’s response to the disaster. Chairman N Chandrasekaran provided a detailed briefing on the immediate relief efforts and support extended to the victims' families. The board collectively offered their heartfelt condolences to the bereaved families.
Sources familiar with the meeting told PTI that Tata Sons reaffirmed its commitment to supporting the victims’ families and is working in close coordination with Tata Trusts to bolster relief measures. A key decision made during the meeting was the announcement of a Rs 1 crore compensation package for the next of kin of every deceased individual, reflecting the conglomerate’s effort to provide tangible and timely support.
In light of the crisis, Chandrasekaran has taken direct operational control of Air India to ensure stable and focused management during this critical time.
The meeting also reviewed Tata’s broader involvement with Air India. In FY 2024-25, Tata Sons and Singapore Airlines infused Rs 9,558 crore into the airline, with Tata Sons contributing Rs 3,224.82 crore and Singapore Airlines Rs 6,333.18 crore. Of this, Rs 4,306 crore was pumped in during March 2025 alone.
Since acquiring Air India in January 2022, the Tata Group has been steering the airline through a five-year transformation strategy. In November 2024, the merger of Vistara a Tata-Singapore Airlines joint venture with Air India was finalized, giving Singapore Airlines a 25.1% stake in the newly merged carrier.
This board meeting marked a solemn but determined step in Tata Sons' ongoing efforts to manage the crisis and support the long-term recovery of Air India.
