1/ In a significant move to boost the Indian aviation industry, the government has taken decisive steps to address leasing challenges faced by Indian airlines and lessors during insolvency cases.
2/ This reduction comes after leasing costs were raised due to complications in repossessing assets by lessors during the insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).
3/ With these crucial amendments in the IBC exempting aircraft equipment, Indian carriers stand to save substantial amounts in leasing costs.
4/ This aligns with international conventions and treaties, including the Cape Town Convention (CTC), which aims to protect the rights of aircraft lessors and financiers.
5/ The Aviation Working Group (AWG), a global watchdog representing aircraft manufacturers and leasing firms, has welcomed these changes. They had downgraded India’s compliance score in the CTC compliance index previously due to delays in insolvency proceedings preventing lessors from repossessing aircraft. With the recent amendments to IBC and the exemption of aircraft equipment under CTC, India’s compliance outlook is improving reflecting a growing sense of optimism.
Estimated Cost Savings: ~ $1.3 Bn
Country: India 🇮🇳
Nature: Capital Expenditure
Source: October 7, 2023 |The Hindu | https://www.thehindu.com/business/Industry/dgca-imposes-30-lakh-fine-on-indigo/article67131311.ece
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