On Tuesday, the Rajya Sabha passed the Protection of Interests in Aircraft Objects Bill, 2025, which enables aircraft lessors to repossess planes in cases of non-payment by Indian airlines. This legislation aims to align India with international standards, specifically the Cape Town Convention, which provides a legal framework for asset-based financing and leasing of aircraft.
Civil Aviation Minister Kinjarapu Rammohan Naidu emphasized that the bill will enhance security for both lessors and lessees, addressing previous inconsistencies in leasing regulations that have hindered the growth of the aviation sector. The bill is expected to lower leasing costs for airlines, potentially leading to reduced airfares for passengers and fostering a more competitive aviation market in India.