India’s aviation sector has grown exponentially, but with that growth came turbulence—especially in the form of unresolved insolvency issues. The downfall of major airlines has exposed the gaps in India’s aviation and legal framework, particularly in safeguarding the rights of creditors, lessors, and investors during an airline’s financial distress.

 

To address these challenges, the government introduced the Protection of Interests in Aircraft Objects Bill, 2025, aligning India’s policies with the Cape Town Convention and Aircraft Protocol, international treaties designed to protect the financial interests of those involved in aircraft leasing and financing.

 

What Is the Aircraft Objects Bill, 2025?

 

The Aircraft Objects Bill, 2025 aims to:

 

• Provide a uniform legal framework for aircraft financing and leasing
• Enhance recovery mechanisms during airline insolvency or default
• Offer legal clarity on the repossession and deregistration of aircraft
• Encourage foreign and domestic investment in India’s aviation sector

 

By codifying international best practices, the bill brings India closer to global aviation standards, promoting greater trust and transparency. 

 

Legal Benefits and the New Era of Compliance

 

This legislative reform heralds a new era of legal certainty in the aviation industry. Key benefits include:

 

• Streamlined asset recovery for financiers during insolvency proceedings
• Reduced risk for foreign investors in Indian aviation
• Improved access to credit for airlines, backed by stronger legal assurances
• Strengthening of India’s global credibility as a drafting and compliance-friendly jurisdiction

 

Role of Lawyers in the Aviation and Insolvency Ecosystem

 

This bill opens vast opportunities for lawyers, particularly those specializing in aviation law, insolvency, and contract drafting. Legal professionals can:

 

• Advise aviation clients on compliance with the Aircraft Objects Bill, 2025
• Draft and negotiate aircraft leasing agreements in accordance with the new framework
• Represent lessors or creditors in insolvency and asset repossession cases
• Guide cross-border entities on registration and enforcement under Indian law
• Shape public policy through commentary on drafting and dispute resolution mechanisms

 

For any enquiries or information, contact info@thelawreporters.com or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels