The Protection of Interests in Aircraft Objects Act, 2025 gets assent of the President and has been notified.
The Protection of Interests in Aircraft Objects Act, 2025, passed by the Indian Parliament, aligns India’s aviation laws with the Cape Town Convention (2001) and its Aircraft Protocol, to which India acceded in 2008. The Act aims to strengthen aircraft financing and leasing by providing legal clarity and uniformity for high-value assets like aircraft, helicopters, and engines. Key provisions include:
Legal Framework: Grants legal force to the Cape Town Convention and Protocol, ensuring enforceable rights for creditors and lessors in India. It overrides conflicting domestic laws, such as the Insolvency and Bankruptcy Code (IBC), 2016, and the Companies Act, 2013.
Creditor Remedies: Allows creditors to repossess, deregister, or export aircraft within a two-month waiting period after a debtor’s insolvency or default, per Alternative A of Article XI of the Protocol, without court approval, unless defaults are cured.
Registry Authority: Designates the Directorate General of Civil Aviation (DGCA) as the registry for recording aircraft interests and dues, ensuring transparency through mandatory reporting by airlines and lessors.
Insolvency Protections: Exempts Cape Town Convention transactions from IBC moratoriums, addressing issues faced during airline insolvencies like Jet Airways (2019) and Go First (2023), streamlining asset recovery.
Economic Benefits: Reduces leasing costs by 8-10% by aligning with global standards, potentially lowering airfares and enabling fleet expansion. It enhances India’s compliance with international norms, boosting investor confidence and positioning India as a hub for aviation financing.
The Act addresses past challenges, such as delays in aircraft repossession during airline insolvencies, and supports India’s growing aviation market, projected to be the third largest by 2030. It awaits the President’s assent to become law.
Download the Protection of Interests in Aircraft Objects Act, 2025 >>
Return could not be said to be non est for non e-verification when AO had been taken due cognizance of…
Section 43CB read with ICDS-III is applicable to contractors and not real estate developers - ITAT In a recent judgment,…
Expenses incurred on ESOP are allowable as revenue expenditure u/s 37(1) of Income Tax Act – ITAT Delhi In a…
Compliance history of supplier could not be used to invalidate the genuine business transactions of the buyer especially when the…
Reassessment quashed as AO issued u/s 148 instead of 153C as reopening was based on incriminating material found during search…
Empanelment of Chartered Accountants/Cost Accountant/Legal firm for FEMA & other allied services Engineering Projects (India) Ltd. has invited application for…