In the wake of the devastating Air India Flight AI171 crash in Ahmedabad on June 12, 2025, the Airline Users Rights and Grievances Redressal Forum (AURGRF) has formally urged the Civil Aviation Minister to swiftly adopt the International Civil Aviation Organization’s (ICAO) revised compensation limits under the Montreal Convention 1999 (MC99). These updated limits came into effect on December 28, 2024.
The tragic incident of AI171 resulted in the loss of 241 lives onboard and over 30 on the ground, including students in a nearby hostel. Following the crash, Air India and the Tata Group announced ₹1 crore in compensation per victim, along with an interim payment of ₹25 lakh, and established support centers in Ahmedabad, Mumbai, Delhi, and London.
This tragedy critically underscores the urgent need for stronger passenger protections and the implementation of consistent and fair airline liability standards across both international and domestic air travel.
Current Compensation Framework Shows Glaring Discrepancies
While acknowledging the positive intent of the 2019 Air Passengers Rights Charter, AURGRF highlights significant inconsistencies within the existing compensation structure. Compensation for death or serious injury, for instance, varies drastically: international passengers may be eligible for up to 113,100 Special Drawing Rights (SDR), whereas domestic cases are capped at a mere ₹20 lakh. Similar disparities are evident in claims for baggage and cargo. For baggage claims, international limits are set at 1,131 SDR, but domestic claims are restricted to ₹20,000. When it comes to cargo loss or damage, the international limit stands at 19 SDR per kilogram, a figure significantly higher than the domestic limit of just ₹350 per kilogram. AURGRF argues that these wide discrepancies foster confusion, weaken accountability within the aviation sector, and ultimately undermine consumer confidence.
ICAO’s Updated Compensation Thresholds
President, AURGRF
To account for inflation and the evolving landscape of modern aviation, ICAO has updated the MC99 compensation limits. For death or serious injury, the new limit is 151,880 SDR (approximately USD 202,500). In cases of passenger delay, the limit is now 6,303 SDR (approximately USD 8,400). For baggage loss, damage, or delay, the compensation limit has been set at 1,519 SDR (approximately USD 2,000). Lastly, for cargo loss or damage, the revised limit is 26 SDR per kilogram (approximately USD 35 per kilogram).
The Imperative for a Unified Approach
The 1999 Montreal Convention (MC99), a framework developed by ICAO and the International Air Transport Association (IATA), establishes a uniform global liability standard applicable to both domestic and international airline operations worldwide. Supported by various ICAO Annexes, this convention harmonizes rules on operations, facilitation, security, dangerous goods, and safety management, thereby strengthening both passenger protection and airline accountability. This unified approach is especially pertinent for India, given that Indian carriers frequently utilize the same aircraft for both domestic and international routes and participate in code-sharing agreements with foreign airlines. These globally harmonized thresholds not only enhance passenger rights but also provide clear guidelines for airline liability. Furthermore, MC99 permits additional compensation if negligence is proven.
AURGRF’s Call to Action
In light of these critical concerns, AURGRF has urged the Government of India to take decisive action. This includes ratifying ICAO’s updated MC99 limits without delay, amending the 2019 Air Passengers Rights Rules to align with international standards, and ensuring equal compensation protection for all passengers, regardless of their route or the type of carrier. AURGRF emphasizes that this moment presents a pivotal opportunity for India to align with global best practices and demonstrate leadership in passenger rights through timely, transparent, and compassionate reform.
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