Draft leasing rules may deter aircraft lessors

India’s draft aircraft leasing rules may deter global lessors from leasing aircraft to domestic airlines, caution aviation legal experts. The cautionary note comes after the Centre enacted the Protection of Interests in Aircraft Objects Act, 2025, to align with the Cape Town Convention (CTC). According to Poonam Verma Sengupta, Partner at JSA Advocates and Solicitors, the draft rules remove the three-month cap and mandate the payment of such dues in full before repossession. This aspect, she said, could delay repossession for lessors as aircraft cannot be exported until all claims are first verified and settled.”It also adds unnecessary costs for lessors and conflicts with India’s Cape Town Convention commitments, particularly Article 13, which emphasises the creditor’s right to prompt possession of aircraft,” she said. The draft rules, Sengupta pointed out, risk undermining investor confidence unless they are rebalanced. Read more