The Protection of Interests in Aircraft Objects Bill, 2025, recently passed by both houses of Parliament, marks a significant development in India’s efforts to implement the Cape Town Convention and Aircraft Protocol. The Bill provides a legal framework for the creation, registration, and enforcement of international interests in aircraft objects such as airframes, engines, and helicopters, thereby enhancing legal certainty and improving access to global financing.

Our update offers a comprehensive analysis of the Bill’s key provisions, including remedies in the event of default or insolvency, treatment of internal transactions (including those involving IFSC, GIFT City), the role of IDERA, and the priority of non-consensual rights. It also explores implementation challenges and the potential need for harmonization with other domestic laws to enable seamless enforcement.

This legislative development is expected to strengthen India’s aviation financing ecosystem and improve investor confidence in aircraft leasing transactions.

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