Kochi: In what is India's largest ever compensation pay out, Air India will pay Rs 75 lakh for each of the 158 people who died in the IX-812 crash at Mangalore, in May 2010.
Civil Aviation Minister Vayalar Ravi said the Government will not appeal the Kerala High Court order and will release the compensation money immediately.
It was the petition of Abdul Salam, the father of one of those killed in the crash, that brought about the decision. Mr Salam lost his 24-year old son, Mohammed Rafi, but refused to accept the initial compensation offered -a mere Rs 10 lakh.
In its judgement today the court also set a precedent of following international convention in such matters of compensation saying, "Mohammed Rafi should not be discriminated by the airline. His compensation should not be restricted with reference to his age, income or the dependency of the members of the family. India is a signatory to the Montreal Convention, and so the petitioners were entitled to have a "minimum of one lakh SDR"s as compensation."
For the cash strapped national carrier, this payment is a crippling blow. Air India has debts of Rs 40,000 crore and has even defaulted in paying salaries to its own employees. Sources within the airline say that while they will have to pay initially, insurance will cover the compensation.
Civil Aviation Minister Vayalar Ravi said the Government will not appeal the Kerala High Court order and will release the compensation money immediately.
It was the petition of Abdul Salam, the father of one of those killed in the crash, that brought about the decision. Mr Salam lost his 24-year old son, Mohammed Rafi, but refused to accept the initial compensation offered -a mere Rs 10 lakh.
In its judgement today the court also set a precedent of following international convention in such matters of compensation saying, "Mohammed Rafi should not be discriminated by the airline. His compensation should not be restricted with reference to his age, income or the dependency of the members of the family. India is a signatory to the Montreal Convention, and so the petitioners were entitled to have a "minimum of one lakh SDR"s as compensation."
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For the cash strapped national carrier, this payment is a crippling blow. Air India has debts of Rs 40,000 crore and has even defaulted in paying salaries to its own employees. Sources within the airline say that while they will have to pay initially, insurance will cover the compensation.
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