The Protection of Interests in Aircraft Objects Bill, a Further Crucial GIFT to the Indian Aviation Industry #IndiaFinance

“WFW is principal legal advisor to the AWG and provides support across all of its projects.”

The Bill is the result of years of hard work by the Indian aviation community, including airlines, and the international aviation community, such as financiers and lessors, who are keen to support Indian aviation. In particular, the Aviation Working Group (the “AWG”) has played a crucial role in coordinating between stakeholders and the Indian government to get the Bill to this stage. The AWG will likely be further involved when the Bill is passed and becomes the Protection of Interests in Aircraft Objects Act, 2025 (the “Act”), to ensure its further implementation and adherence. WFW is principal legal advisor to the AWG and provides support across all of its projects and supports it in ensuring Convention rights are monitored and enforced in its relevant jurisdictions.

Whilst there are many positives to speak of when discussing Indian aviation, the jurisdiction has been overshadowed by several airline insolvencies during the previous decade. It is in these circumstances that the Indian courts have failed to implement the Convention, most recently in the insolvency of GoFirst which left lessors reeling. Delivered almost a year to the day after the airline’s petition for insolvency, the eventual judgment gave some cause for optimism, but in the meantime cost lessors enormously. The judgment as a matter of court precedent finally removed the longstanding conflict between Indian domestic law and the Convention in certain respects.  However, the Act remains crucial to properly implement the Convention. The Bill contains clear and concise provisions which clearly state the provisions of the Convention shall have primacy over Indian domestic law. This will anchor the Convention in India, enabling investors to rely on the provisions of the Convention. The Bill has already had a positive impact as it led to India receiving a positive compliance watchlist notice – for the index maintained by the AWG. That index is designed to provide oversight of jurisdictions where the provisions of the Convention are not being followed as they should.