The Protection of Interest in Aircraft Objects Bill, 2025, introduced by Minister of Civil Aviation Shri Ram Mohan Naidu, was passed in Lok Sabha on 03.04.2025, following its earlier acceptance in the Rajya Sabha. The bill aims to align India’s aircraft leasing and financing ecosystem with global standards and marks a critical step in deepening investor confidence in India’s rapidly growing aviation market.
The Bill builds on the framework of the Cape Town Convention of 2001, which aimed to simplify and standardize international leasing agreements. India formally adopted this convention in 2008, but gaps in legal enforcement led to higher leasing costs—typically 8 to 10 percent higher than other nations. With this bill, India seeks to plug those gaps, providing legal certainty to aircraft financiers and reducing costs for Indian carriers.
The Bill is expected to further ease leasing processes, make India a more attractive destination for aviation investments, and improve the country’s compliance scores under the Cape Town Convention. These changes are essential for reducing airline costs and encouraging new entrants into the sector.
