Dubai: Air India will wait to hear a verdict by the country's supreme court before deciding if relatives of those killed in the Mangalore crash will be compensated according to the Montreal Convention, its new chief says.
The airline's chairman and managing director, Rohit Nandan, said the government-owned carrier would only pay Montreal Convention compensation amounts if the court ruled in favour of the relatives this year.
"Whatever is decided by the Supreme Court, we will abide by it," Mr Nandan said at a gathering of Indian expatriates, travel agents and aviation authorities in Dubai on Monday evening.
"We will honour the decision happily," he said, adding the payout expense would be borne by the carrier's insurance companies.
The Montreal Convention requires airlines to pay compensation to families of 100,000 Special Drawing Rights (SDR) for each passenger. SDR is a mixture of currency values established by the International Monetary Fund – equal to 7.5 million rupees (Dh535,295).
The chairman's comments come a week after 10 families in the UAE said they intended to file suits against Air India by the end of next month for compensation under the Montreal Convention before its two-year statute of limitation ends.
16/04/12 Preeti Kannan/The National