AirAsia to pay out preliminary compensation to victims’ families
The next of kin of victims of AirAsia flight QZ8501 will still be compensated, even as Indonesian authorities say the flight operated without approval.
The Indonesian air transport ministry said the flight was not authorized to operate on Sundays and if this is upheld the airline’s insurance company may not compensate the families.
However according to a CNN report, the carrier has already offered to pay ‘preliminary compensation’ of $24,000 for each of the 154 passengers onboard the ill-fated flight.
A draft letter sent to next of kin explains the pay-out is for ‘financial hardships’ during the search for the plane.
Civil lawyer Alwin Rajasurya said the airline would be liable to pay out if it is found to have broken any rules or adjudged to have been negligent.
"The victims’ families will still get their compensation, it’s just a matter of who pays out," he said.
"It would come down to the exact terms of the agreement between the airline and the insurer once investigations are concluded."
However Indonesia has not signed the 2003 Montreal Convention, a treaty which offers payments of up to $170,000 a passenger along with advance funds for accommodation and transport costs.
Indonesia still follows the Warsaw Convention of 1929 which guarantees a much reduced liability limit per air crash victim.
When quizzed on the touchy subject of compensation just a day after the crash, AirAsia CEO Tony Fernandes said: "We are prepared and we will not be running away from any of our obligations, and will not hide behind any convention."
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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