Rajya Sabha Greenlights Aircraft Leasing Bill 2025 to Boost Aviation Industry

The Rajya Sabha passed The Protection of Interests in Aircraft Objects Bill, 2025, to enforce international aviation agreements in India. This legislation aims to reduce airfares by lowering leasing costs, providing clarity and security for lessors and lessees, boosting India's aviation leasing industry.

The Rajya Sabha approved The Protection of Interests in Aircraft Objects Bill, 2025, aiming to enforce international agreements in India, promising a reduction in airfares. Civil Aviation Minister Kinjarapu Rammohan Naidu emphasized the bill's potential to clear ambiguities in aviation leasing, enhancing security for lessors and lessees.

The bill applies the Cape Town Convention of 2001 and its Protocol to India and provides creditors remedies during defaults. This legislation aims to bolster India's compliance with international standards and reduce leasing costs, ultimately benefiting passengers through lower fares.

The bill's enactment promises to reshape India's aviation market by boosting the leasing industry, with substantial support from airline operators. The government's incentives have led to significant growth in aviation leasing entities, positioning the country to achieve higher international compliance scores.

(With inputs from agencies.)