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Lessors protest India’s proposal of the new law to reclaim planes
October 23rd 2025
The draft aviation rules in India that require leasing companies to first clear airline taxes and salaries before reclaiming aircraft have been met with protest by a group of global lessors, Reuters reports. Read More » The legal hurdles of lessors to reclaim planes after the bankruptcy of Go First in 2023 prompted the government to propose the new law, making the reclaiming easier. However, the draft rules released in September to give effect to the law say wages to employees and government taxes owed by a distressed airline "shall have priority and would need to be cleared" by lessors before they can take their planes back. The rules are impractical and could delay plane repossessions, the Aviation Working Group (AWG) has told India’s civil aviation ministry in a letter, three industry sources with knowledge of the confidential communication told Reuters. The AWG has asked the ministry to reconsider the rules, which were open for public consultation until October 17 and have yet to be finalized. About 80% of commercial passenger jets in India are leased rather than owned, compared to the global average of 58%.
