Government upholds aircraft lessors’ trust in aviation market post IBC exemption

Days after the government excluded aircraft objects from the scope of the insolvency law moratorium, the Ministry of Civil Aviation, on Friday, reaffirmed its commitment to preserving lessors’ trust in the nation’s aviation market. The aim is to reduce the risks they face.

Background: Exemption Under the Insolvency and Bankruptcy Code

On October 3, the Ministry of Corporate Affairs, through a notification, exempted aircraft objects registered in the international registry from the applicability of the IBC’s moratorium. This exemption, which was enacted under the Insolvency and Bankruptcy Code (IBC),