There are two classes of victims in this case, those who had been going about their business and just happened to be in the wrong place at the wrong time.
The other class of victim is those who decided to avoid the safe areas provided for those who wanted to watch the air display, they had knowlage of the display and decided to take the risk of not being in a safe area.
The first category of victim should have full compensation, the second category of victims clearly had knowlage of the risks and decided to take that risk, this fact should be taken into account when compensation is awarded.