The Indian government has reportedly approved the Protection and Enforcement of Interests in Aircraft Objects Bill, 2024, aimed at fostering growth in the country’s aviation sector, sources revealed to BusinessLine. This move is expected to reduce aircraft leasing and financing costs for Indian carriers, which could lead to lower airfares for passengers. Currently, a significant portion of commercial aircraft in India are leased.
Sources indicated that the Cabinet gave its approval to the Bill on Thursday, and it will now be presented in Parliament for further deliberation. Once passed, the Protection and Enforcement of Interests in Aircraft Objects Act, 2024 will protect the rights of lessors to repossess their leased equipment, such as aircraft, engines, and helicopters, in the event of payment defaults.
The Bill also paves the way for India to ratify the Cape Town Convention, a global treaty that ensures lessors have the legal right to recover their leased high-value equipment if lessees fail to meet their financial obligations. This development is seen as a crucial step in modernizing and streamlining the aircraft leasing process in India, contributing to the overall growth of the civil aviation sector.