Bombay High Court Reduces Compensation Awarded to Family of AI Express Crash Pilot

The Bombay High Court has overturned a labour court's decision requiring Air India Charters Ltd to pay Rs 4.63 crore as compensation to the family of a pilot who died in a 2010 crash. The pilot was commanding an AI Express flight that crashed at Mangaluru airport. Justice Sharmila Deshmukh stated that the compensation should be Rs 3.32 crore, based on the pilot's salary at the time.

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On May 22, 2010, an Air India Express Boeing 737 crashed while landing at Mangaluru airport, resulting in the deaths of all 158 people on board, including pilot Zlatko Glusica, a Serbian national. Glusica's family sought USD 7,45,580 in compensation, claiming his monthly earnings were USD 11,000. However, Air India Charters stated his salary was USD 9,170 per month.

Compensation Dispute

In September 2012, Air India Charters deposited Rs 3.32 crore with the Labour Commissioner Workmen's Compensation office in Mumbai as an interim measure. The following year, in October 2013, the Commissioner for Employees Compensation ordered Air India Charters to deposit USD 7,45,580 (Rs 4.63 crore) along with a 50% penalty and 12% annual interest from the accident date.

Air India Charters contested this order in the High Court. They argued that Glusica was employed through a contract with Sigmar Aviation Ltd and that his salary was lower than what the Commissioner considered when determining compensation. The High Court found the Commissioner's order flawed and intervened.

High Court Ruling

The High Court ruled that the compensation amount deposited by Air India Charters Ltd was sufficient if calculated based on Glusica's actual salary of USD 9,170 per month. Consequently, there was no additional amount due beyond what had already been deposited. The court also waived the 50% penalty fee imposed on the company.

This decision highlights the complexities involved in determining compensation in aviation accidents and underscores the importance of accurate salary assessments in such cases.