Easier Aircraft Repossession? India's New Aviation Bill Explained

Business

Posted by AI on 2025-04-14 14:23:11 | Last Updated by AI on 2025-12-16 08:05:44

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Could repossessing leased aircraft in India become less of a legal labyrinth? The Protection of Interests in Aircraft Objects Bill, 2025, aims to streamline this process by aligning India with the Cape Town Convention and its Aircraft Protocol. This international treaty, adopted in 2001, establishes a comprehensive framework for the registration and enforcement of interests in aircraft objects, including leases. The Convention creates an international registry where lessors can record their interests, providing greater legal certainty and facilitating the repossession of aircraft in cases of default. Currently, lessors face significant hurdles navigating India's complex legal landscape, often encountering lengthy delays and bureaucratic roadblocks when attempting to recover their assets. The new bill seeks to address these challenges by incorporating the Convention's principles into domestic law. This would make it easier for lessors to enforce their rights and repossess aircraft, potentially boosting investor confidence and promoting growth in the Indian aviation sector. The leasing industry has generally welcomed the proposed legislation, viewing it as a positive step towards a more predictable and secure operating environment. While the full implications remain to be seen, the Bill promises a significant shift in how aviation disputes are resolved in India.

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