NEW DELHI: The Indian government is considering expediting the passage of a crucial Bill that aims to provide greater assurance to aircraft lessors regarding the repossession of aircraft in case of defaults or breaches of lease agreements. The move comes as a positive step towards strengthening the regulatory framework for the aviation sector in India.
The Bill, which has been under discussion for some time, seeks to address the concerns of aircraft lessors who often face challenges in repossessing their leased aircraft in the event of lessee defaults. Currently, the legal process for repossession can be lengthy and cumbersome, leading to financial losses for lessors.
By expediting the Bill, the government aims to streamline the repossession process and provide a more conducive environment for aircraft leasing companies. This would enhance the attractiveness of India as a destination for aircraft leasing activities and encourage greater participation from international lessors.
The proposed legislation is expected to bring more clarity and certainty to the repossession process by outlining specific provisions and timelines. It will establish a legal framework that enables lessors to regain possession of their aircraft in a timely manner, mitigating financial risks and protecting their investments.
The expedited passage of the Bill reflects the government’s commitment to bolstering the aviation industry and promoting ease of doing business. It demonstrates the authorities’ proactive approach in addressing the concerns of stakeholders and creating a favorable business environment.
The aviation sector in India has been significantly impacted by the COVID-19 pandemic, and the proposed Bill can play a vital role in revitalizing the industry. By providing greater assurance to lessors, it can attract more leasing companies to operate in India, leading to increased fleet availability and improved connectivity.
As the government fast-tracks the Bill, it is anticipated to garner support from industry stakeholders, including lessors, airlines, and aviation experts. The legislation is expected to strike a balance between protecting lessors’ interests and maintaining a fair and transparent process for all parties involved.
