Aircraft Objects Bill 2025: Cape Town Convention Alignment
Why in the news
The Rajya Sabha cleared a bill that brings India’s aircraft-leasing rules in line with an international treaty, giving lessors firmer protection when airlines default.
Key facts
- Bill: Protection of Interests in Aircraft Objects Bill, 2025, passed by the Rajya Sabha.
- Gives effect to the Cape Town Convention and Protocol.
- DGCA (Directorate General of Civil Aviation) becomes the key regulator for treaty provisions.
- Sets clear steps for repossession of aircraft and dispute resolution after payment defaults.
- Leasing expenses are expected to drop by 8-10%.
Expected benefits
| Group | Likely gain |
|---|---|
| Aviation industry | Cheaper leasing; more investment as foreign lessors find India attractive |
| Airlines | Easier lease deals, fleet growth without heavy capital, better liquidity |
| Passengers | Savings could translate into lower fares |
Background
- Earlier lease conflicts involving SpiceJet and Go First exposed uncertainty over getting aircraft back.
- 86% of the fleets of Indian airlines are leased, so legal certainty matters.
- Following global norms is meant to raise India’s standing in aviation finance.
Exam angle
- International treaty behind the bill: Cape Town Convention.
- Regulator named: DGCA.
- Share of leased aircraft in Indian fleets: 86%.