Air India
Tata Sons has approved the creation of a public charitable trust of Rs 500 crore to help the families of the victims of Air India Flight AI171 crashed on June 12 after flying from Ahmedabad Airport on 12 June. In this accident, 241 passengers and crew members died, as well as 19 people on the ground died. It has become India’s biggest aircraft accident after the Charkhi Dadri accident in 1996. This is Air India’s first deadly accident since 1985, and Boeing 787 Dreamliner is also the first major accident in the aircraft’s history.
Decision to create a trust
After the accident, at the first board meeting of Tata Sons, Chairman N Chandrasekaran proposed to establish the trust, which the board unanimously approved. This trust will provide financial assistance and long -term rehabilitation aid to the families and injured of the dead. According to the Moneycontrol report, the board has instructed Air India to collect necessary documents by contacting the victim families and start the process of connecting them with the trust.
Trust structure and fund distribution
- 300 crore rupees will be given to the families of the deceased, including both doctors and passengers of BJ Medical College.
- 50 crore rupees are prescribed for the treatment of the injured, which include most BJ Medical College staff.
- 50 crore rupees will be spent in the reconstruction of the hostel block of the medical college, which was badly damaged in the accident.
- The remaining 100 crore rupees will be spent on the long -term needs of the victim families.
Former Gujarat Chief Minister Vijay Rupani was also among the dead, who were identified through DNA test, as the heat of the fire reached about 1,500 ° C in the accident. About 60 people were injured on the ground.
Trust’s next process
This trust will be formally registered by the end of July and will be operated by the board. It will be chaired by N Chandrasekaran and other members, including some independent and non-tata trustees, will be involved. Trust’s plan was given by Tata Motors group CFO P.B. Balaji is leading.
Additional help and compensation
Apart from this trust, Tata Sons had already announced a assistance of Rs 1.25 crore to every deceased family. These compensations will also be fulfilled through the trust. A total of 275 people died in the accident. 241 present in the aircraft and 19 on the ground. The only living passenger of the aircraft was hospitalized for five days.
Tata Sons, along with its main shareholder Tata Trusts, is carrying relief work. The initiative reminds the Taj Public Welfare Trust, after the Tata group’s earlier relief operations, such as the 26/11 Mumbai attack.
Insurance and financial impact
The total insurance claims associated with the AI171 accident can reach about $ 475 million (about 4,000 crore rupees), as 50 foreign nationals were also aboard the aircraft. Although Air India insurance is under Tata Sons company Tata Aig General Insurance, most of the risks have been reinstated with global insurance companies, which will reduce the direct impact on the Tata group.
Chandrasekaran will take over the command of Air India himself
After the accident, N Chandrasekaran has taken direct surveillance of the daily functioning of Air India. Air India was taken by Tata in January 2022 and is now working on a 5 -year reconstruction plan. In the financial year 2024-25, Tata Sons and Singapore Airlines jointly invested Rs 9,558 crore in Air India, out of which Tata Sons’s share was Rs 3,224.82 crore and Singapore Airlines was Rs 6,333.18 crore. In March 2025 alone, a capital of Rs 4,306 crore was imposed.