Parliament Passes Bill to Protect Aircraft Interests

Why in the News ?

Parliament has passed the Protection of Interests in Aircraft Objects Bill, 2025, to implement the Cape Town Convention and secure rights over aircraft assets. It aims to boost aircraft financing, align aviation laws with global standards, and promote leasing efficiency.

Parliament Passes Bill to Protect Aircraft Interests

Key Highlights of the Bill:

  • Parliament has passed the Protection of Interests in Aircraft Objects Bill, 2025, with Lok Sabha approval following Rajya Sabha’s nod.
  • The Bill aims to protect interests in high-value mobile aviation assets like aircraft, helicopters, and engines.
  • It seeks to implement the Cape Town Convention (2001) and its related Protocol specific to aircraft equipment.
  • The Convention and Protocol bring international uniformity in financing and leasing of aircraft assets.
  • The Directorate General of Civil Aviation (DGCA) is designated as the registry authority for recording and deregistering interests in aircraft objects.
  • The Bill empowers the central government to frame rules for implementation and regulatory functions.

Government’s Vision & Industry Growth

  • Civil Aviation Minister Rammohan Naidu highlighted the sector’s strong performance under the current government.
  • Since 2014, air passenger traffic has doubled, reaching over 20 crore travelers.
  • The aviation sector has grown at a compound annual growth rate (CAGR) of 12%.
  • The Bill is a milestone towards making flying affordable and improving the efficiency of the aviation sector.

Importance for Indian Aviation Sector:

●      The legislation aligns Indian aviation laws with global standards, improving investor confidence in aircraft leasing and financing.

●      It aims to make aircraft financing more secure, efficient, and accessible.

●      By facilitating easier access to international leasing and financing mechanisms, the bill supports fleet expansion and lower airfares.

●      This move is expected to promote the growth of India’s aircraft leasing industry, reducing dependence on foreign lessors.