Today I have spoken in the Parliment on “The Protection of Interests in Aircraft Objects Bill, 2025”.
***************************************Thank you, Madam vice chairman.
The Protection of Interests in Aircraft Objects Bill, 2025 aims to ratify the Convention on International Interest in Mobile Equipment, 2001, commonly known as the Cape Town Convention, along with its protocol.
This critical international treaty establishes a standardized legal framework for transactions involving movable aviation assets—aircraft, engines, and helicopters—while providing essential legal protections for creditors, lessors, and financiers.
Yet, despite signing the Cape Town Convention in 2008, India failed to ratify it for nearly two decades, rendering its provisions legally ineffective all this time. The convention sat in limbo, ignored and unenforced, while other nations moved ahead.
The bill has finally been introduced, but not before India faced a downgrade in its Cape Town Convention compliance rating by the Aviation Working Group (AWG)—a downgrade that has had real financial consequences for Indian airlines. Higher leasing costs, diminished investor confidence, and unnecessary economic strain—all because of delayed action.
Global lessors and financiers closely track AWG ratings, particularly for a market as massive as India—the world’s third-largest domestic aviation sector.
Yet, despite this stature, India lags behind Pakistan in compliance. Pakistan, with a passenger market of just 7.6 million, holds a higher AWG rating than India, which has a staggering 327 million passengers in the same period. The reason is India’s failure to act in time.
And let’s be clear—this delay wasn’t due to ignorance.
In 2018, the Ministry of Civil Aviation (MoCA) proposed ratifying the Cape Town Convention. Nothing happened. In 2022, another attempt was made with the Protection and Enforcement of Interests in Aircraft Objects Bill. Again, nothing happened. Now, in 2025, after years of delay, the bill has finally reached the Rajya Sabha.
Yes, the bill is a step forward, but India’s aviation sector deserves better, faster, and more decisive governance—not policies that come into effect only after the damage is done!
INFRASTRUCTURAL ISSUES
Sir, I would like to point out now that the aviation sector of the country is facing many challenges and is in poor state, needs immediate attention.
Firstly, the infrastructure at many airports across India remains inadequate, with notable deficiencies even in key airports.
Take Chennai International Airport, one of the top 50 airports in Asia, handling over 18 million passengers annually—yet, what do we see? Chennai Airport is now lagging behind compared to other international airports. The glass panels falls down. The construction is being done years to gether in snail space hampering free movement. A critical shortage of aerobridges, forcing international flights to operate under subpar conditions. Only four aerobridges for countless international flights! This blatant lack of infrastructure has forced airlines to withdraw operations, cutting off vital connectivity, hurting businesses, and inconveniencing passengers.
And if that wasn’t enough, the Directorate General of Civil Aviation (DGCA) has made matters worse by shifting Points of Call (PoC) to Hyderabad and Bangalore, sidelining Chennai. Demand from Chennai to Vietnam in 2024 stands at 32,000, while Hyderabad has only 21,000, yet flights are being pushed to Hyderabad! Why?
Private interests, not public needs, are dictating aviation policy.
Privatization was promised as a path to progress. Instead, we are witnessing monopolization in favour of oneGroup(Advani) which controls eight major airports, handling 25% of passenger traffic and one-third of all air cargo. One corporate giant wields unchecked power over critical national assets! Where are the safeguards? Where is the fair competition and growth of others.?
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