India Strengthens Aviation Leasing with New Bill Approval

The Protection of Interests in Aircraft Objects Bill, 2025, was approved by the Indian Parliament to bolster aircraft leasing in one of the world's fastest-growing aviation markets. The bill aligns with the Cape Town Convention, facilitating cost-effective aircraft leasing, significant fleet expansion, and an investment-friendly aviation environment.

In a landmark decision, the Indian Parliament has approved the Protection of Interests in Aircraft Objects Bill, 2025, a move poised to revolutionize the nation's civil aviation industry. The bill aims to cut risks and expenses associated with leasing aircraft, offering a robust legal framework that aligns with international standards set by the Cape Town Convention.

Civil Aviation Minister K Rammohan Naidu emphasized the bill's role in improving cost efficiency for airlines and supporting the rapid expansion of their fleets. By aligning with global conventions, the legislation is set to enhance India's standing as a reliable hub for aviation finance and leasing, attracting more investment into the sector.

The passage of the bill comes at a crucial time as India continues its growth trajectory in the aviation market, recording a 12% CAGR despite recent challenges. The expansion of airports and increase in passenger numbers underline the urgent need for cost-effective leasing arrangements, addressed comprehensively by this new legislation.

(With inputs from agencies.)