TaxTMI 
TaxTMI 
Protection of Interests in Aircraft Objects Bill: MPs urge safety for Indian stakeholders
X X X X Extracts X X X X
X X X X Extracts X X X X
....rotection of Interests in Aircraft Objects Bill: MPs urge safety for Indian stakeholders<BR>PTI News<BR>Dated:- 28-3-2025<BR>PTI<BR>New Delhi, Mar 28 (PTI) The MPs on Friday said while the Protection of Interests in Aircraft Objects Bill makes it easier for the foreign companies to repossess aircraft from the Indian aviation companies, its impact on other stakeholders such as aviation firms, passe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ngers and employees among others also need to be taken into account. The MPs put forth their views in the Rajya Sabha during a discussion on The Protection of Interests in Aircraft Objects Bill, 2025. “The Bill prioritises international creditors and leasing companies over domestic airlines making it easier for the foreign entities to repossess aircraft without adequate consideration of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....impact on Indian airlines, passengers and employees,” said YSRCP MP Alla Ayodhya Rami Reddy supporting the Bill. “This could destabilize the domestic aviation sector especially during financial distress or insolvency,” he added. Expressing a similar concern, Aam Aadmi Party (AAP) MP Sandeep Kumar Pathak said the aviation industry is a capital intensive sector where there is a need to tak....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e care of investors as well as companies. There are four stakeholders of this sector -- foreign investors, aviation companies, travellers and the government, added the MP from Punjab. Raising the issue of protection of small companies, Pathak said the investors can take back the aircraft within two months and the small companies will get trapped in the process of insolvency. “Level playing....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... field is important,” he said while expressing support in favour of the Bill. The other members of the Rajya Sabha too spoke in favour of the Bill and highlighted the delay in its enactment which will ensure the protection of interest of foreign investors. DMK MP from Tamil Nadu, P Wilson, said the Bill aims to ratify The Convention on International Interests in Mobile Equipment, commonly kn....
X X X X Extracts X X X X
X X X X Extracts X X X X
....own as the Cape Town Convention, along with its protocol. This critical international treaty, according to Wilson, establishes a standardized legal framework for transactions involving movable aviation assets such as aircraft, engine and helicopter while providing essential legal protection for creditors, lessors and financers. “Despite signing the Cape Town Convention in 2008, India failed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to rectify it for nearly two decades rendering its provision legally ineffective all this time. It sat in limbo while other nations moved ahead,” he said. The DMK MP added that India faced a downgrade in Cape Town Convention rating by the Aviation Working Group (AWG) which resulted in higher leading cost and decreased investors confidence. “Pakistan’s AWG rating is higher than India,” ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Wilson said and called the Bill a step forward. Expressing support to the Bill, Pathak said the Bill will help streamline the processes of dealing with the insolvency and leasing cases in the aviation sector. “Despite India agreeing to the Cape Town Convention in 2001 and other international protocols in 2008, it has taken all these years to bring the legal support to the agreement that we s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....howed several years ago,” Pathak said. Some of the members took the opportunity to highlight regional issues and demanded government intervention. Trinamool Congress (TMC) MP Prakash Chik Baraik demanded direct flight from Kolkata to London, while Biju Janata Dal (BJD) MP Sasmit Patra raised Odisha's aviation needs such as fast-tracking the proposal for the international airport at Puri, exp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ansion of Jharsuguda airport, direct international connectivity from Bhubaneswar and strengthening the Rourkela airport among others. PTI JP AS AS<BR> News - Press release - PIB....