India’s Parliament has passed the Protection of Interests in Aircraft Objects Bill, 2025, a significant step to improve the country’s aviation sector. This new law will make it easier for airlines to lease aircraft and strengthen legal protections for aircraft lessors.
This bill aligns India’s aviation laws with the Cape Town Convention and its Aircraft Protocol, international agreements that make aircraft leasing and financing more secure. Here’s how it helps:
- Stronger Legal Protection: Aircraft lessors can repossess and export aircraft quickly if airlines default on payments.
- Lower Costs for Airlines: With better legal security, leasing companies may offer aircraft at lower costs, reducing financial pressure on Indian airlines.
- Potentially Cheaper Air Travel: If airlines save money on leasing, they might pass on the benefits to passengers by lowering ticket prices.
- Easier Fleet Expansion: The bill makes it simpler for Indian airlines to lease more planes, helping them meet growing air travel demand.
India is one of the fastest-growing aviation markets in the world. Airlines have placed over 1,300 aircraft orders since 2022, showing the need for a strong and secure leasing system. However, in the past, India’s bankruptcy laws made it difficult for lessors to take back their planes from struggling airlines. The new bill fixes these issues and ensures that the aviation sector runs smoothly.
The Aircraft Leasing Bill, 2025, is a game-changer for India’s airline industry. Giving confidence to aircraft lessors paves the way for a more stable and cost-effective aviation sector. This move is expected to encourage more aircraft leasing in India, making flights more affordable and boosting the country’s global aviation presence.
