New bill could give aircraft leasing firms more power to repossess planes

In a move that will make it easier for aircraft leasing firms to seize the planes of airlines that have not paid rents, the Centre is planning to introduce the Cape Town Convention Bill in the monsoon session of Parliament, according to a report in The Economic Times (ET). In case of conflict with any other local law, particularly the Insolvency and Bankruptcy Code (IBC), 2016, the bill will give priority to the Cape Town Convention.

It is a global agreement that guarantees the rights of lessors to repossess their leased high-value equipment such as aircraft, helicopters, and engines in case of payment defaults.