Kozhikode Families Mark Air India Crash Anniversary — A Year of Legal and Economic Fallout

Families of 18 passengers who died in the Air India Express Flight AXB-1344 crash gathered in Kozhikode on Saturday to mark one year since the aircraft overshot the runway at Calicut International Airport and fell into a gorge. The ceremony, held near the memorial at the crash site, brought together relatives who received compensation under the Montreal Convention but say money cannot address their unanswered questions about why the aircraft came down.

Day of remembrance in Kerala

The Air India Express low-cost carrier flight was carrying 191 passengers and crew when it crashed on January 18, 2024. The Boeing 737-800 had been en route from Dubai to Kozhikode. Of those aboard, 151 sustained injuries and 18 died at the scene or shortly after. The Kozhikode memorial has become a site of pilgrimage for families who live across Kerala and beyond.

India's Directorate General of Civil Aviation launched an investigation within hours of the crash. Its preliminary report flagged the table-top runway configuration at Calicut — an elevated strip built on a plateau — as a central concern. The airport has a history of incidents on this runway. In 2015, an Air India Express aircraft nearly flipped over after landing on the same strip.

Legal claims and compensation battles

Air India Express, a Tata Group subsidiary, paid the statutory compensation mandated under the Montreal Convention, which governs international airline liability. The airline additionally offered ex gratia payments to families of the deceased. However, several families filed civil suits in Kerala High Court seeking higher damages and answers about pilot training, aircraft maintenance records, and whether the airline's operational protocols were adequate for a table-top runway in wet conditions.

The legal proceedings remain active. Two class-action petitions consolidated under a single case are expected to receive a hearing date by March. Aviation law practitioners in New Delhi say the consolidated case could set a precedent for how Indian courts handle future mass-casualty aviation claims.

Insurance implications for the sector

The crash sent a ripple through aviation insurance markets. Reinsurers in London and Singapore, which underwrite a large portion of Indian airline risk, requested detailed maintenance and safety audit reports from Air India Express within weeks of the incident. Industry sources familiar with those requests said the disclosures were extensive and ongoing.

Higher reinsurance premiums typically translate into increased costs for all Indian carriers, not just Air India Express. Insurers assess risk across the sector based on aggregate claims history. One aviation insurance executive in Mumbai, who asked not to be named, told this publication that the sector has seen a meaningful shift in how underwriters price Indian risk since the crash.

Regulatory tightening across the sector

DGCA imposed temporary operational restrictions on Air India Express following the crash, requiring the airline to demonstrate enhanced safety protocols before resuming full operations. The regulator simultaneously ordered a sector-wide review of all table-top runways in India. Mangalore, Shimla, and Pakyong airports were flagged as requiring immediate safety upgrades.

The government ordered the Airports Authority of India to expedite installation of enhanced runway safety areas at these locations. As of December 2024, the installation of Engineered Materials Arrestor Systems — structures designed to slow an aircraft that overruns — was underway at Kozhikode. Similar systems at Mangalore airport are scheduled for completion by mid-2025.

Market implications for Air India and Boeing

The crash arrived at a delicate moment for Air India's parent company, Tata Group, which had just completed a major restructuring of its aviation holdings. Tata had merged Air India and Air India Express under a single holding company and committed to a fleet expansion programme worth billions of dollars. The accident introduced a complication that no investor presentation had anticipated.

Air India placed a firm order with Boeing in 2023 valued at approximately $1.2 billion, covering 737 MAX aircraft including the MAX 10 variant. The crashed aircraft was a legacy 737-800, not a MAX, but the broader scrutiny around Boeing's safety record in the Indian market has intensified. Airline executives in Bangalore and Mumbai say the accident has added pressure on both Air India and Boeing to demonstrate that the fleet expansion programme will meet the highest safety benchmarks.

What happens next

The DGCA investigation is expected to conclude with a full findings report by the end of the first quarter of 2025. Aviation analysts in Singapore and London say the report will determine whether regulatory action is taken against specific airline personnel, including pilots and maintenance engineers. Any adverse findings could expose Air India Express to additional civil liability beyond the ongoing court cases.

The Ministry of Civil Aviation is preparing a five-year infrastructure upgrade plan for airports operating table-top runways. Parliament's standing committee on transport is scheduled to review the draft plan in March. Whether it mandates the upgrades or leaves implementation to airport operators will be a key test of the government's commitment to runway safety.