India’s draft aircraft leasing rules may deter global lessors from leasing aircraft to domestic airlines, caution aviation legal experts.

The cautionary note comes after the Centre enacted the Protection of Interests in Aircraft Objects Act, 2025 to align with the Cape Town Convention (CTC).

Speaking to businessline , Mansi Singh, Partner at BTG Advaya, cited that one of the most contentious aspects of the draft rules is the priority given to a broad set of domestic claims over registered international interests.

“Essentially, an aircraft cannot be exported from India unless the lessor clears a host of outstanding dues such as unpaid wages of airline employees, airport operator charges, route navigation and facilitation charges, fuel charges, and GST payable in relation to the leasin

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