Akasa Air founder and CEO Vinay Dube that the latest amendment in India’s bankruptcy law that allows aircraft lessors to repossess their aircraft will prove to be really positive for the Indian aviation industry.
"The latest amendment to the IBC will encourage lessors to collaborate with Indian airlines by leasing more aircraft, at commercially favourable rates. We applaud the government and the Civil Aviation Minister for this progressive step that cements into law the tenets of the Cape Town convention,” he told CNBC-TV18 in an exclusive interaction.
Dube’s remark comes after the Ministry of Corporate Affairs (MCA), earlier this week, amended sub-section (1) of section 14 of the IBC, 2016 giving a major relief to aircraft lessors.
The amendment allows aircraft lessors to be able to repossess their aircraft though this will not be applicable in the ongoing Go First insolvency case. This, as the government has already made it clear that the provisions of sub-section (1) of section 14 of the IBC, 2016 (31 of 2016), shall not apply to transactions, arrangements or agreements, under the Convention and the Protocol, relating to aircraft, aircraft engines, airframes and helicopters.
At a time when close to 80% of aircraft in India are leased, Akasa Air CEO believes that the Indian aviation industry is set to grow multi-fold in the coming years. He explained that as players continue to expand operations and the industry carves space for new players, there will be a need for continued support from lessors to cater to this growth.
06/10/2023 CNBC TV18
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