Global Aircraft Lessors Oppose India’s Draft Rules on Jet Repossession Dues

New Delhi, Oct 22 (KNN) Global aircraft lessors have voiced strong opposition to India’s proposed aviation regulations, arguing that the new rules could make it harder for them to reclaim leased aircraft from financially distressed airlines.

According to the draft released by the Ministry of Civil Aviation, lessors may be required to settle certain outstanding dues—such as taxes, airport fees, and employee payments—before taking back their planes. 

Industry groups, including the Aviation Working Group (AWG), say this clause places an unfair financial burden on lessors and could discourage future leasing activity in India.

Currently, about 80% of commercial aircraft operated by Indian airlines are leased, far above the global average of 58%. This heavy reliance on leasing makes clear and predictable repossession laws vital for investor confidence. 

However, past cases like the Go First insolvency in 2023—where lessors struggled to retrieve their planes—have already made leasing firms cautious about the Indian market.

Although the government had earlier amended legislation to simplify repossession, the new draft rules are seen as a setback. 

Legal experts say requiring lessors to pay unrelated dues could lead to further delays and disputes, counteracting recent reforms meant to align India’s aviation laws with global standards.

The draft rules were open for public feedback until October 17, and discussions between government officials and leasing representatives are expected soon. 

The AWG has urged the ministry to reconsider the proposed payment conditions to maintain India’s attractiveness as a leasing hub.

(KNN Bureau)