1. Purpose of the Bill: The Protection of Interests in Aircraft Objects Bill, 2025 aims to provide a legal framework to protect the interests of lessors and financiers of aircraft, thereby reducing risks and costs involved in aircraft leasing for Indian airlines.
  2. Based on Cape Town Convention: The Bill aligns with the Cape Town Convention (CTC), 2001, an international treaty designed to standardize transactions involving aircraft equipment, including leasing and financing of aircraft, engines, and helicopters.
  3. Simplifying Aircraft Leasing: The Convention and the Bill work together to simplify, secure, and harmonize international leasing and financing agreements, encouraging more global investors to participate in India’s growing aviation sector.
  4. India’s Commitment to CTC: India formally ratified the Cape Town Convention in 2008, but lacked enabling domestic legislation until now. The 2025 Bill fills this gap, ensuring that India fully complies with the Convention’s obligations.