Rajya Sabha Passes Bill to Transform Aviation Leasing in India

The Rajya Sabha passed The Protection of Interests in Aircraft Objects Bill, 2025, aiming to align India's aviation sector with international agreements. Intended to lower leasing costs and airfares, the bill promises enhanced clarity and legal protection for stakeholders, fostering growth in the aviation leasing industry.

The Rajya Sabha has passed a new bill aimed at revolutionizing the aviation leasing industry by aligning with international conventions. Enacted by Civil Aviation Minister Kinjarapu Rammohan Naidu, the legislation seeks to provide legal clarity and protection for lessors and lessees, addressing a long-standing grey area.

This legislation, titled The Protection of Interests in Aircraft Objects Bill, 2025, intends to reduce leasing costs by 8 to 10 percent, which may translate to lower airfares for passengers. The bill enables creditors to reclaim assets, addressing inconsistencies observed in previous airline defaults and boosting India's global compliance score.

The bill aims to stimulate the airline industry, with implications for stakeholders such as Air India and Indigo supporting its passage. By ensuring adherence to the Cape Town Convention protocols, the government hopes to enhance India's aviation leasing market while offering opportunities for small and large airline operators alike.

(With inputs from agencies.)