New Delhi: US aviation giant Boeing on Friday said the most important step India can take to provide relief to lessors is to push for legislation that will enable the implementation of the Cape Town Convention (CTC), which regulates payments But allows lessees to easily take back their aircraft from defaulting airlines. ,
The statement comes amid an earlier order by the National Company Law Tribunal (NCLT) Week which accepted Go Airlines’ voluntary bankruptcy petition and provided protection under a moratorium on financial obligations and adverse actions by lenders and lessors – which essentially meant that lessors would not be able to take possession of the aircraft that the airline had leased. Has been given.
the lessees have raised concerns On the decision of NCLT.
Speaking to the media on Friday, Salil Gupte, president of Boeing India, said: “We know that the Government of India has been evaluating over the past several years whether there is legislation to help clear up some of the confusion in the market about how aviation property is treated. NCLT process.
“There is a protocol, there is a treaty that India has accepted, called the Cape Town Convention, which gives more clarity to the courts around it,” he said. “And we certainly would encourage the ministry to continue progressing that legislation.”
Leasing aircraft is a preferred option for airlines globally, and this holds more true for Indian air carriers.
According to EstimateAbout 80 per cent of India’s total commercial fleet is on lease as compared to 53 per cent globally.
Talking about the impact of the NCLT decision on leasing rates in India, Ryan Weir, vice president, commercial sales and marketing for Boeing Commercial Airplanes, India, said that although it is probably too early to comment on the outcome, Boeing is “concerned”. Is. What will happen to the lease rates, if the current (NCLT) order stands.
Calling the GoFirst insolvency unfortunate, Weir said Boeing would work with its customers to identify and discuss any impact of the court rulings and to “mitigate any impact” to the best of their ability. Will do
However, Gupte said that while there are challenges, “progress will never stop here as the macro trend of growth for India is very well known and very clear”.
He said that India is the fastest growing civil aviation market and will continue to be one of the fastest growing economies of the world in the near future. That, he said, is going to be the ultimate driver of aviation.
Dave Schulte, Managing Director, Regional Marketing, Boeing Commercial Airplanes, said the company is aggressively targeting the Indian markets and expects to deliver around 2,300 airplanes over the next 20 years.
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