India: The Indian government is moving forward with ratifying the Cape Town Convention, an international agreement designed to enhance aircraft leasing by providing repossession rights in cases where airlines default on lease payments. This step is expected to make it easier for leasing companies to invest in the Indian aviation sector.
Vumlunmang Vualnam, Secretary of the Ministry of Civil Aviation, confirmed that the bill to ratify the Cape Town Convention is under progress and has already been approved by the Union Cabinet. “It will be presented to Parliament soon, and we expect it to become enforceable in India,” Vualnam said at the International Conference on Air Mobility.
The Convention is anticipated to improve the leasing environment in India, benefiting both domestic and international companies involved in aircraft leasing and acquisition.
Regulatory Updates in Aviation Sector
Vualnam also mentioned amendments to the Aircraft Act of 1934, now updated under the Bharatiya Vayuyan Adhiniyam, effective from January 1, 2025. The revision addresses the evolving needs of the aviation industry and aims to improve aircraft design, manufacturing, and maintenance standards.
India’s air passenger numbers have increased from 160 million in 2014 to 380 million in 2024. The government projects that the number of air passengers could reach 3.8 billion by 2047, in line with the country’s development goals.
Expansion of Airport Infrastructure
India’s airport infrastructure is also expanding. Currently, the country has 159 airports, and the government projects that this number will rise to 350 by 2047 to accommodate the expected growth in air travel.
Passenger Growth Projections
India has one of the lowest per capita air travel rates, with an average of 0.13 air trips per person annually. However, even small increases in this number could lead to substantial growth in the sector, supported by the country’s large population and expanding economy.
The upcoming ratification of the Cape Town Convention, alongside other regulatory updates, is expected to provide a stable framework for the growth of India’s aviation and aerospace industries.
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