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New Delhi: US aerospace major Boeing has requested India to "fully ratify" the Cape Town Convention (CTC) which allows lessors' to easily repossess their aircraft from defaulting on rentals and defunct airlines. Boeing India president Salil Gupte said here Friday that once that happens, "lessors will get more comfort. We are trying to mitigate CTC concerns (for India) by pushing for full ratification to happen here. We encourage the aviation ministry to progress that legislation and help resolve this situation (lessors' distrust)."
NCLT granting Go First's plea for voluntary insolvency has given the airline protection from assets in its possession - like aircraft and airport slots - being taken away for at least six months. Lessors had last week applied to get 45 of Go First's 54 de-registered so that they could repossess them but now the same can't happen, sparking concerns in the leasing industry for India. While India is a signatory to the Cape Town Convention, the bankruptcy law takes precedence over the same.
This is not the only challenge seen in the world's fastest growing aviation market that is plagued by very high operating costs for airlines, thereby having leading to few financially viable or well-capitalised carriers.
Boeing MD (marketing) David Schulte said: "India is one of the most challenging markets for civil aviation. There are three main challenges." First, he said is the "highest cost of jet fuel" (globally) for domestic flights.
12/05/2023 Saurabh Sinha/Times of India
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