India’s fast-growing airline industry faces higher leasing bills unless the country clarifies its insolvency laws, the head of major leasing firm Aviation Capital Group (ACG) said on Wednesday.
Foreign lessors, including an Irish subsidiary of U.S.-based ACG, were blocked from recovering jets caught up in the bankruptcy of budget carrier Go First last year and many are still embroiled in a legal battle to recover their assets.
India amended its insolvency laws last October to exclude leased aircraft from assets that can be frozen in a bid to address discrepancies between local and global rules, including the 2001 Cape Town Convention.
