India Takes a Significant Step Forward in Aviation Legislation

In a move that promises to revolutionize the aviation leasing industry in India, the Parliament has passed the Protection of Interest in Aircraft Objects Bill, 2025. This legislation is set to align India with the global standards of the Cape Town Convention, ensuring that aircraft lessors no longer face the risk of their assets being indefinitely stranded in the country due to airline failures.

A Win for Lessors and Airlines Alike

The bill is expected to significantly reduce leasing costs for Indian airlines, which have historically been 8% to 10% higher than in other countries due to legal enforcement gaps. By providing legal certainty to aircraft financiers, India is not only making its aviation sector more attractive to investors but also encouraging new entrants into the market.

India's Aviation Sector on the Rise

Union aviation minister Ram Mohan Naidu highlighted the remarkable growth of India's civil aviation sector, with passenger numbers more than doubling in the last decade and the number of airports increasing significantly. "These figures show that civil aviation in India is not just growing—it’s booming," he stated, attributing this success to the leadership of PM Narendra Modi.

Looking Ahead

The passage of this bill marks a critical step in deepening investor confidence in India's rapidly expanding aviation market. With the sector witnessing unprecedented growth, the new legislation is poised to further ease leasing processes and enhance India's compliance with international standards.