Rapid Fire
India to Ratify Cape Town Convention
- 27 Jan 2025
- 2 min read
The Union Cabinet has approved the Protection and Enforcement of Interests in Aircraft Objects Bill to strengthen India's aviation framework and align it with global standards.
- It aims to ratify and enforce the provisions of the Convention on International Interests in Mobile Equipment (Cape Town Convention), and Protocol on Matters Specific to Aircraft Equipment (Cape Town Protocol).
Cape Town Convention (CTC):
- About:
- The CTC is an international treaty that allows creditors, such as lessors, lenders, and financiers, to repossess high-value mobile assets like aircraft, engines, and helicopters if the airline defaults on lease payments.
- It was adopted in Cape Town, South Africa, in 2001.
- Key Features:
- International Registry: Establishes a global registry to record interests in mobile equipment, ensuring transparency and prioritizing registered creditors' claims.
- Default Remedies: Provides clear remedies for creditors, including the deregistration and export of aircraft without lengthy local legal procedures.
- Cape Town Protocol: It complements CTC and sets out specific rules for aircraft financing and leasing.
India's Status:
- India signed the CTC in 2008 but has not yet ratified it, thus the convention's provisions are not legally binding in India.
- India is the world's third-largest domestic aviation market after the US and China.
Read More: India's Aviation Industry
