India Takes Flight: New Bill to Boost Aircraft Leasing Industry

The Indian Parliament has approved the Protection of Interests in Aircraft Objects Bill, 2025, aimed at enhancing the aircraft leasing industry in India. This bill provides legal backing to the Cape Town Convention and is expected to improve airlines' cost efficiency and plane expansion through leasing.

In a significant move to strengthen India's position in the global aviation sector, Parliament approved the Protection of Interests in Aircraft Objects Bill, 2025, on Thursday. The bill, which aims to bolster the country's burgeoning aircraft leasing industry, received the Rajya Sabha's nod on April 1 and was passed by the Lok Sabha through a voice vote.

Civil Aviation Minister K Rammohan Naidu, addressing a discussion on the bill, emphasized its role in enhancing cost efficiency for airlines and facilitating rapid fleet expansion by simplifying aircraft leasing procedures. The legislation supports the Cape Town Convention, which governs aircraft leasing practices, and addresses previous regulatory inconsistencies.

The Protection of Interests in Aircraft Objects Bill ensures that under the Cape Town Convention, aircraft lessors retain the right to repossess planes leased to airlines, thus providing much-needed security and confidence to industry stakeholders. This legal backing is expected to catalyze the growth of India's aircraft leasing market, further propelling the civil aviation sector.