Protecting the Skies: Balancing Interests in the Indian Aviation Sector

The Protection of Interests in Aircraft Objects Bill, 2025, discussed in Rajya Sabha, aims to ease aircraft repossession by foreign companies, raising concerns among MPs about potential impacts on the Indian aviation sector. Supporting the Bill, MPs highlighted the need for a legal framework aligning with international standards.

On Friday, Members of Parliament voiced their concerns during the Rajya Sabha discussions on The Protection of Interests in Aircraft Objects Bill, 2025. While the Bill facilitates foreign companies in repossessing aircraft from Indian firms, MPs stressed the need to consider its effects on domestic stakeholders.

YSRCP MP Alla Ayodhya Rami Reddy expressed support for the Bill, highlighting its priority on international creditors over domestic airlines. He noted potential destabilization during financial distress. Echoing these concerns, AAP MP Sandeep Kumar Pathak underlined the sector's capital intensity and the necessity of safeguarding both investors and companies.

DMK MP P Wilson emphasized the Bill's role in ratifying the Cape Town Convention, aiming to standardize legal frameworks for movable aviation assets. Despite overdue ratification, MPs heralded the Bill as a critical step forward, addressing regional issues and aviation infrastructure needs highlighted by their counterparts.

(With inputs from agencies.)