Air India Flight AI 171 Crash: One of India’s Deadliest Aviation Disasters
The crash of Air India Flight AI 171, an Ahmedabad-to-London Boeing 787-8 Dreamliner, on June 12, 2025, has sent shockwaves through India’s aviation industry. The incident, which occurred shortly after takeoff from Sardar Vallabhbhai Patel International Airport, claimed 241 lives out of the 242 people on board, with only one British national, Vishwash Kumar Ramesh, surviving. The crash also resulted in the deaths of at least 38 people on the ground when the aircraft struck a medical college hostel.
According to the General Insurance Corporation of India (GIC Re), the total insurance claims related to the crash could reach up to $475 million (approximately ₹39.4 billion), driven primarily by liability payouts that are expected to exceed the aircraft’s value by more than 2.5 times. GIC Re Chairman and Managing Director Ramaswami Narayanan stated that the hull (aircraft) would be valued at around $125 million, while liability claims, including passenger liability, third-party liability, and other personal accident and travel policies, are expected to amount to approximately $350 million.
The incident marks the first fatal crash involving a Boeing 787-8 Dreamliner and the deadliest aviation accident globally in a decade. Preliminary investigations by India’s Aircraft Accident Investigation Bureau (AAIB), supported by the UK’s Air Accidents Investigation Branch and the US National Transportation Safety Board (NTSB), suggest engine failure as a potential cause of the crash. A high-level committee led by the Government of India is reviewing expert opinions on possible causes and discussing Standard Operating Procedures to prevent similar incidents in the future.
In response to the tragedy, the Tata Group, which owns Air India, has announced compensation for the families of the victims and pledged support for rebuilding the destroyed medical college building. Aviation industry experts say the estimated $475 million claim highlights the scale of the tragedy and will have far-reaching implications for the airline industry.
