The government of India notified the Protection of Interests in Aircraft Objects Act, 2025, which provides protection to aircraft lessors against moratorium rules under the Indian insolvency law. The act aligns India’s aviation laws with the Cape Town Convention (2001) and its Aircraft Protocol, to which India acceded in 2008, and aims to strengthen aircraft financing and leasing by providing legal clarity and uniformity for high-value assets like aircraft, helicopters, and engines.
The Act grants legal force to the Cape Town Convention and Protocol, ensuring enforceable rights for creditors and lessors in India. It overrides conflicting domestic laws, such as the Insolvency and Bankruptcy Code (IBC), 2016, and the…
