We are pleased that it’s finally been cleared by the Union Cabinet, which will provide legal support to the Cape Town Convention, more or less aircraft leasing,” said Vumlunmang Vualnam, Civil Aviation Secretary. The bill was going to be presented before Parliament for approval.
India is one of the world’s fastest-growing aviation markets, which has seen its domestic carriers order over 1,200 aircraft. At the International Conference on Air Mobility organized by CII and the civil aviation ministry, Vualnam expressed optimism over legal backing to the Cape Town Convention in India. “We are hopeful that Cape Town Convention would soon get legal backing in India, which goes a long way in supporting aircraft leasing and acquisition,” said Vualnam.
The Cabinet has greenlighted the Protection and Enforcement of Interests in Aircraft Objects Bill to give expression to the Cape Town Convention and the Cape Town Protocol, focusing only on aircraft equipment.
The Cape Town Convention enables lessors to recover aircraft leased to airlines. This was the case in the insolvency resolution process of Go First, wherein a moratorium was placed on lessors’ repossession of their leased planes. An interim arrangement was later allowed for lessors to recover their aircraft.
India is a signatory to the Cape Town Convention but has not ratified it. The National Company Law Tribunal on Monday ordered liquidation of Go First.
The new Bharatiya Vayuyan Adhiniyam, 2024 which replaces the 90-year-old Aircraft Act has come into effect from January 1. It would smoothen the aircraft design and manufacturing in India and ease of doing business in the aviation sector.
