India to Strengthen Aircraft Leasing Market with Cape Town Convention Bill

ENA Sectors 2025-01-22 16:25:04 Noida, Jan 22 (KNN) In a significant move that aims to bolster India's rapidly expanding aviation sector, the Union Cabinet recently approved a bill to ratify the Cape Town Convention, a key international treaty that governs aircraft leasing. This bill, which is now set to be presented before Parliament, promises to provide much-needed legal backing for aircraft leasing, a sector critical to the growth of Indias aviation industry. India is currently one of the worlds fastest-growing civil aviation markets, with domestic carriers placing orders for over 1,200 planes to meet the increasing demand for air travel. However, to sustain this growth and attract international players, a robust framework for leasing aircraft has become essential. The Cape Town Convention, which India had previously signed but not ratified, will now play a central role in ensuring smoother operations in aircraft leasing by enforcing provisions related to aircraft equipment. Speaking at the International Conference on Air Mobility in Greater Noida, Civil Aviation Secretary Vumlunmang Vualnam expressed optimism about the bills future, stating that the legal ratification of the Cape Town Convention would greatly enhance Indias leasing market. We are hopeful that sooner than later, the Cape Town Convention will have legal backing in India and become enforceable, thereby supporting the leasing and acquiring of aircraft, he said. The Cape Town Convention provides lessors with the legal right to repossess aircraft leased to airlines, a crucial measure for maintaining the financial stability of leasing companies. This provision became particularly significant during the insolvency of Go First, where lessors faced challenges in reclaiming their aircraft due to a temporary moratorium. While an ad hoc solution was later put in place, the new legal framework promises to resolve such issues more effectively in the future. In addition to this, Indias aviation sector is undergoing broader reforms. The new Bharatiya Vayuyan Adhiniyam, 2024, which replaced the archaic Aircraft Act of 1934, came into force on January 1. This progressive legislation aims to promote the design and manufacturing of aircraft within India while easing the regulatory burden on the aviation industry. With these crucial legislative changes, India is positioning itself as a competitive player in the global aviation market, attracting investments and fostering growth in its burgeoning aviation sector. (KNN Bureau) 40752 https://knnindia.co.in/news/newsdetails/sectors/india-to-strengthen-aircraft-leasing-market-with-cape-town-convention-bill 2025-01-22 16:25:04 knnindia.co.in India to Strengthen Aircraft Leasing Market with Cape Town Convention Bill