Current Affairs Exam

Rajya Sabha Passage: The Protection of Interests in Aircraft Objects Bill, 2025, has been passed, aiming to implement international conventions on aviation equipment leasing.

Cape Town Convention: It implements the

Purpose: To secure rights over high-value mobile assets like aircraft, helicopters, and engines, ensuring legal clarity in the aviation industry. It aims to protect creditors and stakeholders in aviation leasing.

DGCA Role: The Directorate General of Civil Aviation (DGCA) is designated as the registry authority for aircraft registration and de-registration. Airlines must inform DGCA about dues to lessors, and lessors must inform DGCA about their activities.

Creditor Rights: Creditors must notify DGCA before initiating remedies in case of default. They can recover assets within two months or a mutually agreed timeframe.

Benefits: The bill is expected to provide clarity and security in the leasing industry, potentially reducing leasing costs by 8-10%, which may lead to lower airfares.

Need for the Bill: With 86.4% of planes operating in India under a leasing model, the bill aims to establish a domestic leasing industry, addressing the absence of prior legislation in this area, creating provision for intimation of dues to lessors periodically.