Bill to Propel India's Aircraft Leasing Industry

The Protection of Interests in Aircraft Objects Bill, 2025, aims to enhance India's aircraft leasing sector by providing legal support to the Cape Town Convention. This legislation addresses leasing regulatory inconsistencies, boosting the domestic aircraft leasing industry and strengthening the banking system.

The Indian government is set to revolutionize its aircraft leasing industry with the introduction of the Protection of Interests in Aircraft Objects Bill, 2025. Civil Aviation Minister K Rammohan Naidu announced that the bill's passage will rectify regulatory inconsistencies and bolster the nation's banking ecosystem.

Passed by the Rajya Sabha, the legislation aligns with the Cape Town Convention's framework, facilitating legal recourse for lessors in reclaiming aircraft from insolvent airlines. This move is expected to encourage domestic lessors and enhance the country's aviation landscape.

India, a leading civil aviation market, has signed but not ratified the Cape Town Convention. The bill's enactment will formalize the convention's legal status, streamlining leasing regulations, and addressing past challenges such as those faced by Go First during its insolvency process.

(With inputs from agencies.)