Parliament passes Protection of Interests in Aircraft Objects Bill

Parliament approves bill to enhance aircraft leasing in India, boosting cost efficiency and growth in aviation sector.

Parliament on Thursday (April 3, 2025) approved the Protection of Interests in Aircraft Objects Bill, 2025 that will help reduce risks and costs for aircraft leasing by airlines in India, which is one of the world's fastest growing civil aviation markets.

The bill was passed by the Rajya Sabha on April 1.

Replying to the discussion on the bill, Civil Aviation Minister K Rammohan Naidu said the bill will help improve the cost efficiency for airlines as well as in faster expansion of their fleets through leasing of aircraft.

Soon after passage of the bill in the Lok Sabha, Mr. Naidu said it marks a significant step in strengthening India's position as a reliable and investment-friendly hub for aviation financing and leasing.

"By aligning with the Cape Town Convention & Aircraft Protocol, we are reducing risks and costs for aircraft leasing -- ensuring a robust, globally competitive aviation ecosystem," he said in a post on X.

In the House, Mr. Naidu also said there are not enough planes in India to meet the demand and the bill will help bring down the costs for leasing aircraft.

Citing data, the Minister said the country's civil aviation sector has recorded 12% CAGR (Compound Annual Growth Rate) despite various challenges, including the grounding of Jet Airways and Go First.