Protection of Interests in Aircraft Objects Bill, 2025:
The Rajya Sabha recently passed the Protection of Interests in Aircraft Objects Bill, 2025, which seeks to implement international conventions on the leasing of aviation equipment.
- The bill aims to implement international agreements, particularly the Convention on International Interests in Mobile Equipment (commonly known as the Cape Town Convention of 2001) and its Protocol on Aircraft Equipment.
- India became a signatory to these agreements in 2008.
- These international standards are designed to secure the rights over high-value mobile assets such as aircraft, helicopters, and engines, thereby ensuring greater legal clarity and uniformity across the aviation industry.
- The bill is designed to bring these international agreements into India’s legal framework, ensuring that creditors and stakeholders in the aviation leasing space are protected under clear guidelines.
- The bill empowers the central government to make rules to implement the provisions of the Convention and the Protocol.
- The legislation designates the Directorate General of Civil Aviation (DGCA) as the registry authority for the purposes of the convention.
- The registry authority is responsible for the registration and de-registration of aircraft.
- Key provisions of the bill include the requirement for creditors to notify the DGCA before initiating any remedies in the event of a default.
- In cases where defaults occur, creditors will be entitled to recover assets such as aircraft, helicopters, and engines within two months, or a mutually agreed upon timeframe.
- The bill is expected to provide much-needed clarity and security, particularly in the leasing industry.
