Centre bars bankrupt airlines from holding on to leased aircraft and engines in the future

Going forward, Indian airports might not see stranded aircraft collecting dust after an airline goes bankrupt. In a fresh gazette notification on October 03, 2023, the Ministry of Corporate Affairs informed that lessors can repossess their planes after an airline files for bankruptcy.

“……..The Central Government hereby notifies that the provisions of sub-section (1) of section 14 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), shall not apply to transactions, arrangements or agreements, under the Convention and the Protocol, relating to aircraft, aircraft engines, airframes and helicopters,” the notification informed.