India’s implementation of the Protection of Interests in Aircraft Objects Act, 2025 has been endorsed by the Aviation Working Group (AWG), which highlighted the legislation as aligning India’s aviation legal framework with global standards.
Within a white paper released on April 24, 2025, AWG highlighted how this new law in India gives full domestic effect to the Cape Town Convention (CTC), securing the rights of aircraft financiers and lessors.
The act, passed earlier this year, overrides domestic laws and ensures that the rights of creditors are preserved in cases of insolvency or default.
Aircraft lessors have faced challenges in India over recent years, particularly in recovering aircraft from insolvent operators. The new legislation prioritises the rights of creditors in insolvency situations, a move that is expected to significantly improve confidence among global leasing firms and reduce costs of financing for Indian carriers
The AWG said that the act delivers “full implementation” of the CTC, signalling a major shift in legal protections for creditors operating in India’s aviation sector.
The white paper also notes how the legislation enhances India’s standing under the Aircraft Sector Understanding (ASU), potentially reducing borrowing costs for Indian carriers and making the country a more attractive jurisdiction for both lessors and financiers.
Visit https://awg.aero/ for the full white paper.