Go First fallout: India considers passing Cape Town Convention Bill to comfort foreign aircraft lessors
NEW DELHI: India may now expedite legislating the long pending Cape Town Convention (CTC) Bill following Go First case to assuage aircraft lessor concerns and ensure leasing planes does not get more expensive for desi carriers, say people in the know.
The aviation ministry had in October 2018 sought comments on the CTC Bill 2018 to implement the treaty India had signed in 2008 to basically assure lessors their expensive assets like aircraft and engines will not get stuck here when Indian carriers default on paying rentals or go belly up. However the move has remained stuck since then.
But the events of the past few days where lessors were unable to repossess 45 of Go First’s 54 Airbus A320 aircraft after NCLT admitted the airline’s plea for voluntary insolvency could now lead to dusting of this 2018 proposal.
