In the aftermath of the tragic Air India flight 171 crash near Ahmedabad, Tata Sons has decided to establish a dedicated welfare trust to support the families of those affected. The crash, which resulted in over 250 fatalities—including 241 onboard and 19 on the ground—has been marked as the worst aviation disaster in India in the last decade.
AI171 Trust to Receive Major Funding
Tata Sons, which holds a 74% stake in Air India, will contribute ₹500 crore towards the newly announced AI171 Trust. Sources also suggest that Tata Trusts, the majority shareholder in Tata Sons, is expected to match this contribution, taking the total commitment to ₹1,000 crore.
Previously, Tata Sons and Air India had jointly pledged ₹1.25 crore in immediate financial assistance to each bereaved family.
Ownership and Board Approval
Singapore Airlines holds around 25% of Air India, while the remaining 1% is owned by the airline’s employee trust. The decision to form the AI171 Trust was reportedly approved at a Tata Sons board meeting held on Thursday. This meeting followed a visit by Tata Trusts chairman Noel Tata to the crash site and local hospitals.
Legal and Structural Plans Underway
Next steps include the legal registration of the AI171 Trust as a public charitable entity and the appointment of trustees. Tata Sons chairman N Chandrasekaran is expected to head the trust, alongside other non-Tata members.
Modelled on Taj Trust Response to 26/11 Attacks
The initiative draws inspiration from the Taj Public Service Welfare Trust, which was set up by Indian Hotels (a Tata Group company) following the 26/11 Mumbai terror attacks in 2008. That trust, which initially supported victims and families of the terror attack, later expanded its scope to assist injured soldiers, migrant workers, frontline staff, and healthcare workers during the pandemic.
Tata Board’s Broader Strategic Focus
The emergency board meeting also came 29 days after the last meeting on May 29, during which the board approved financial statements for Q4 and FY 2024–25. It also sanctioned over ₹30,000 crore in capital investments for new ventures, including semiconductor projects and further investments in Air India.
Chairman’s Increased Involvement Post-Tragedy
N Chandrasekaran, who also serves as Air India’s chairman, has increased his direct oversight of the airline following the crash. His involvement includes consultations with government officials, reviews of airline safety protocols, and supervision of aircraft maintenance efforts.
Expected Compensation Could Reach $475 Million
The total compensation linked to the disaster could exceed $475 million. This includes an estimated $350 million in liability claims, partly due to the presence of over 50 foreign nationals among the deceased.
