In the wake of the devastating crash of Air India Flight AI171 in Ahmedabad on June 12, which claimed the lives of 241 passengers and over 30 individuals on the ground—including students in a nearby hostel—the Airline Users Rights and Grievances Redressal Forum (AURGRF) has submitted a formal memorandum to the Hon’ble Minister of Civil Aviation. The forum is urging the immediate adoption of the International Civil Aviation Organization’s (ICAO) revised compensation limits under the Montreal Convention 1999 (MC99), which came into effect globally on December 28, 2024.
Highlighting the inconsistencies in compensation between domestic and international air travel in India, AURGRF is calling for urgent regulatory reforms to align India’s passenger rights framework with updated international standards. The tragic incident has exposed significant gaps in current domestic compensation laws, where families of victims of domestic flights are entitled to a maximum of INR.20 lakh, compared to 113,100 Special Drawing Rights (SDR) for international passengers—now updated to 151,880 SDR (approximately USD 202,500) under ICAO’s revised MC99 limits.
Air India and the Tata Group had previously announced a compensation of INR.1 crore per victim, along with an interim payment of INR.25 lakh and support centers set up in key cities like Ahmedabad, Mumbai, Delhi, and London. However, AURGRF insists that India must institutionalize such measures through legal reforms rather than rely on discretionary actions by airlines.
The memorandum further points out other critical disparities in compensation: international baggage claims are capped at 1,131 SDR, whereas domestic claims are limited to just INR.20,000; cargo loss is covered at 19 SDR per kg internationally, but only INR.350 per kg for domestic flights. ICAO’s updated limits now provide for 6,303 SDR (USD 8,400) for passenger delays, 1,519 SDR (USD 2,000) for baggage-related issues, and 26 SDR/kg (USD 35/kg) for cargo loss or damage.
The Montreal Convention, backed by ICAO and IATA and supported by Annexes 1 through 19, aims to create a uniform, global liability standard that treats all passengers equally—irrespective of whether they are on domestic or international routes. AURGRF emphasized that since Indian carriers frequently operate the same aircraft across domestic and international sectors and engage in code-sharing agreements with global airlines, it is logical and essential for India to adopt a unified compensation framework.
In its appeal to the Government of India, AURGRF recommends three urgent steps: ratify ICAO’s updated MC99 limits without further delay, amend the 2019 Air Passengers Rights Rules to reflect international standards, and ensure equal compensation protection for all passengers regardless of route or carrier.
This moment, according to AURGRF, is pivotal for India to align its aviation policies with global best practices and reinforce passenger trust through compassionate, transparent, and timely reforms. The forum believes such action will not only bolster consumer confidence but also elevate India’s global standing in aviation safety and accountability.
