Air India owner reveals how much it will pay families affected after plane with 242 on board crashes shortly after takeoff

Air India has confirmed how much the families of the victims on board the fatal plane crash that took place in Ahmedabad will receive.

Air India's AI 171 flight was bound for London Gatwick and was expected to touch down in the UK at 6.25pm local time this evening.

However, the plane crashed into a residential area called Meghani Nagar after taking off from India's Ahmedabad Airport. Authorities have since confirmed that the aircraft crashed into a medical college hostel.

According to Air India, there were 242 people on board the plane. The airline stated: "Of these, 169 are Indian nationals, 53 are British nationals, 1 Canadian national and 7 Portuguese nationals."

Commissioner G.S. Malik of the Ahmedabad city police gave an update on the incident, telling The Associated Press that it 'appears there are no survivors in the plane crash', however, one survivor has since been confirmed by police.

Now, the Tata Group, which owns Air India, has released a statement credited to Natarajan Chandrasekaran, the chairman of the company.

A view of the site where a plane crashed shortly after takeoff from Sardar Vallabhbhai Patel International Airport in India's western state of Gujarat today (Stringer/Anadolu via Getty Images)

The Twitter statement read: "We are deeply anguished by the tragic event involving Air India Flight 171.

"No words can adequately express the grief we feel at this moment. Our thoughts and prayers are with the families who have lost their loved ones, and with those who have been injured."

It continued: "Tata Group will provide ₹1 crore [$116,000] to the families of each person who has lost their life in this tragedy. We will also cover the medical expenses of those injured and ensure that they receive all necessary care and support. Additionally, we will provide support in the building up of the B J Medical's hostel."

The statement added: "We remain steadfast in standing with the affected families and communities during this unimaginable time."

India's Prime Minister Narendra Modi also took to Twitter to share how 'the tragedy in Ahmedabad has stunned and saddened us', adding: "It is heartbreaking beyond words. In this sad hour, my thoughts are with everyone affected by it. Have been in touch with ministers and authorities who are working to assist those affected."

An infographic details how Air India commercial airline plane crash unfolded (Mehmet Yaren Bozgun/Anadolu via Getty Images)

Meanwhile, Prime Minister of the UK, Keir Starmer, commented on the 'devastating' incident, saying: "The scenes emerging of a London-bound plane carrying many British nationals crashing in the Indian city of Ahmedabad are devastating.

"I am being kept updated as the situation develops, and my thoughts are with the passengers and their families at this deeply distressing time."

Horrifying video footage of the crash has circulated online in recent hours, which shows the plane making a rapid descent before an explosion can be seen and heard.

A subsequent fire resulted in a large plume of smoke rising near the airport.