Rajya Sabha passes Protection of Interests in Aircraft Objects Bill

New Delhi: The Rajya Sabha has passed the Protection of Interests in Aircraft Objects Bill, 2025, a significant piece of legislation aimed at reinforcing India’s commitment to international aviation agreements. The bill is designed to bring legal clarity to aircraft leasing and ownership, benefiting both lessors and lessees in the aviation sector.

The legislation aligns India with global aviation standards by implementing provisions from international treaties, particularly the Cape Town Convention of 2001 and its Protocol on Aircraft Equipment. India became a signatory to these agreements in 2008. These frameworks establish legal security over high-value mobile assets like aircraft, helicopters, and their engines, ensuring uniformity and protection for stakeholders in the aviation industry.

During discussions on the bill, Civil Aviation Minister Kinjarapu Rammohan Naidu emphasized that this legislation would resolve a persistent gap in the sector. He noted that it enhances financial and operational stability for lessors and lessees, fostering a more predictable and secure aviation environment.

Key Provisions of the Bill

The legislation mandates that before a creditor can enforce remedies in case of a default, they must notify the Directorate General of Civil Aviation (DGCA). It also grants creditors the right to reclaim an aircraft or related asset within two months or another pre-agreed timeframe, ensuring a streamlined recovery process.

Minister Naidu underscored that the primary objective of the bill is to formalize India’s adherence to the Cape Town Convention and its associated protocol. By doing so, India aligns itself with international aviation norms, reinforcing its obligations under the International Civil Aviation Organisation (ICAO).

Initially introduced in the Rajya Sabha on February 10, 2025, the passage of this bill marks a crucial step toward harmonizing India’s aviation regulations with global best practices. The move is expected to bring long-term benefits to the industry, improving overall market confidence while potentially lowering airfares for travelers.

Potential Impact on Airfares

By providing a clear legal structure for aircraft leasing, the bill is expected to make leasing more efficient and cost-effective. Minister Naidu pointed out that increased transparency and legal security will encourage leasing companies to operate more freely, ultimately reducing leasing costs for airlines. Lower operational expenses could translate into more affordable ticket prices for passengers.