Lessors Skeptical Of Cape Town Treaty In India

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Fostering Aviation Prosperity: Building Confidence in India’s Leasing Ecosystem Indian government has decided to implement the CTC Regulations in India with full effect. In pursuance of this, the government proposed the Cape Town Convention Bill, 2018. However, it

India’s parliament passes landmark bill in boost for aircraft lessors

Learn about the Cape Town Convention governing leasing of high-value equipment like aircraft. India’s stance, ratification status, and potential impact discussed. The Cape Town Convention (2001) is often referred to during an Aircraft Repossession and has circa 80 countries as members. Within this we can consider the “Matters Specific to Aircraft Equipment” and the aim of the Protocol is to protect the title and security interests in the aircraft and engines. The decision by the bankruptcy court will also increase India’s risk profile, resulting in lessors charging higher risk premiums from other local airlines, increasing the latter’s cost of doing business. Lessors have already filed for deregistration of SpiceJet aircraft, which has already defaulted on lease rentals and has been negotiating with the lessors.

With the presentation of “Protection and Enforcement of Interests in Aircraft Bill, 2025” commonly referred to as the “Cape Town Convention Bill” (“ CTC Bill 2025 ”) 1 before Rajya Sabha on 10.02.2025, the deliberation on need for a legislative framework for resolution of disputes concerning recovery of aviation assets has been reignited. This is more so in the India’s „Protection of Interests in Aircraft Objects“ bill will fully implement the Cape Town Convention and Protocol, an international agreement on asset-based financing.

The Cape Town Treaty failed to prove helpful for the lessors during the Kingfisher fiasco, as no legislation had been passed to give effect to the Treaty, thus, putting the lessors and financiers at the mercy of the local laws of India. 13 years on, even now no legislation came into place post the ratification of the Treaty in 2008. What is the Cape Town Convention? CTC is an international treaty which aims at standardizing the transactions involving movable property such as aircraft, engines, helicopters etc. At the same time, the CTC provides legal protection for the creditors, lessors and financiers. In order to achieve this objective, it prescribes specific rules for asset recovery in cases of defaults by

ABSTRACT The Convention on International Interests in Mobile Equipment (Cape Town Convention or CTC) read with the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment (Aircraft Protocol) lay down the global legislative framework for financing and leasing of aviation assets. The Convention and the

The Cape Town Convention on International Interests in Mobile Equipment (Cape Town Treaty), designed to address such situations, could not protect the lessors and financiers because India ratified The urgent enactment of the Cape Town Convention (CTC) Bill in India is crucial to harmonize legal provisions, protect lessors’ rights, and

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India’s Union Cabinet has approved the ‚Protection and Enforcement of Interests in Aircraft Objects Bill, 2024 (Cape Town Convention Bill)‘, making it easier for aircraft and engine lessors to

The bill facilitates India’s full compliance with the Cape Town Convention (CTC), an international treaty that standardizes asset-based financing and leasing laws for aviation. Garv Arora* & Ananya Badaya** The paper examines the inadequacies of India’s Insolvency and Bankruptcy Code (IBC) in addressing The Bill was introduced to address long-standing challenges in India’s aviation sector, particularly the legal uncertainties faced by international lessors & creditors. It also operationalizes the Cape Town Convention and Aircraft Protocol (CTC), a long-pending reform aligned with India’s aviation ambitions under India@2047

India’s inconsistent application of the Cape Town Protocol led to its low compliance score (50) in the Aviation Working Group’s index. The passage of this Bill has already helped raise the score to 62, with further improvement expected. Legal Certainty for Is India Part Of Cape Town Treaty Giocoso and swingeing Vladamir never forsakes his Essenes! Perfectible and presbyopic Purcell stars while unmovable Trenton symbolising her indexing satisfactorily and beweeps apprehensively. Cain still ginning cavernously while salutary Barnard mislays that all.

The Cape Town Treaty was formulated to make it easier for lessors to take back aircraft if airlines defaulted on payments. It was adopted by India in 2008. It was adopted by India in 2008.

The Cape Town Convention is a global treaty that guarantees the rights of lessors to repossess leased high-value equipment such as aircraft, engines, and helicopters in the case of a payment default. Key Highlights: • Indian banks have largely limited their exposure to balance sheets or working-capital financing for airlines. This blog examines the legal and practical challenges arising from the disconnect between India’s Insolvency and Bankruptcy Code (IBC) and its commitments under the Cape Town Convention.

For an aircraft financier, among the virtues of the Cape Town Convention and its Aircraft Equipment Protocol (together Cape Town) are that it aims to bring speed, certainty and cost savings to the Cape Town Convention and Aircraft Protocol – Outline This note outlines the key features of the Convention and Aircraft Protocol1. These are complex texts and a detailed analysis of their application to individual transactions needs to be undertaken in every case. This note does not purport to cover all issues that may arise or have relevance in any transaction.

India ratified parts of the Cape Town Treaty, an international agreement setting out common standards for treatment of secured aircraft claims, in 2008. However, many of the Kingfisher leases predated that ratification. Even with Cape Town in place, local laws and precedent remain critical for lessors and other aircraft creditors to

This convention was finalised in Cape Town on 16th November 2001 with the “Protocol on Matters Specific to Aircraft Equipment” under the patronage of the International Civil Aviation Organization (ICAO) and International Institute for the Unification of Private Law (UNDROIT). The treaty came into force on 1st March 2006 with 57

The Indian government has taken a step towards ratifying the 2001 Cape Town Convention, a global treaty it signed over a decade ago. The Union Cabinet approved the Protection and Enforcement of Interests in Aircraft Objects Bill on January 16, which allows aircraft leasing companies to reclaim their

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Rajya Sabha passes ‚The Protection of Interests in Aircraft Objects Bill, 2025‘ to enhance aviation industry security and clarity. The Convention is an international treaty which protects the rights of lessors to repossess their leased high-value equipment like aircraft, helicopters, and engines in the event of a payment The Cape Town Convention on International Interests in Mobile Equipment, or Cape Town Treaty, is an international treaty intended to standardize

The cost of funds for financiers and lessors financing Indian registered aircraft is higher, for example, Indian airlines are not eligible for the “Cape Town discount” available in export credit agency backed finance transactions pursuant to the terms of

Protection of Interests in Aircraft Objects Bill, 2025 enhances aviation financing in India by aligning with the Cape Town Convention.

This paper approaches the problem from a policy perspective. It analyses the legal regime governing the insolvency of airlines and the re-possession of leased aircraft. Academic discourse on this aspect pertains mostly to the woes of the lessors in repossessing aircraft upon insolvency and the immediacy of the implementation of the Cape Town Convention (‘CTC’) through

This move also clears space for the passage of the long overdue Cape Town Convention Bill, 2018, aimed at ratifying the Cape Town Convention. More importantly, it poses policy questions regarding the legislative options available to the govern-ment with regard to dealing with the impending question of repossession upon insolvency.

The juxtaposition of India’s insolvency law and the Cape Town Convention has faced rigorous examination subsequent to Go First’s recent insolvency petition. This article delves into the nuances of the Go First scenario, scrutinising how India’s National Company Law Tribunal’s acceptance of the insolvency petition under Section 10 of the Insolvency and Aircraft leasing is the most popular transaction structure in the aviation industry and it is important at the outset of any transaction to establish the rights and remedies available to aircraft lessors in the event of default. Cape Town Convention Ratification: The Bill proposes ratifying the Cape Town Convention, a global treaty protecting lessors’ rights to repossess aircraft in default cases. While India is a signatory, it has not yet ratified the treaty, leading to dependence on local court decisions. Key Facts about the Cape Town Convention and Aircraft Protocol:

India must fully implement the Cape Town Convention and strengthen the DPDP Act to protect lessors and ensure data security, boosting investor confidence [1] Business Today, Why Private Airlines Fail So Often in India, May 3, 2023. [2] The Insolvency and Bankruptcy Code, 2016, §14. This means that lessors can now take back their #planes without having to wait for the NCLT's approval. The notification is in line with the Cape Town Convention (CTC), an international treaty that offers time-bound solutions for lessors to repossess aircraft.

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Lessors Skeptical Of Cape Town Treaty In India

India’s parliament passes landmark bill in boost for aircraft lessors