The Bill aims to address the issue of aircraft equipment financing, which has been a significant concern for the Indian aviation industry.

The Need for the Aircraft Equipment Financing Bill

The Indian aviation industry has been growing rapidly over the past few years, with a significant increase in passenger traffic and fleet size. However, this growth has also led to a number of challenges, including the financing of aircraft equipment. The current system of financing aircraft equipment is complex and often opaque, making it difficult for airlines to secure loans or leases. Key challenges: + High interest rates + Limited access to financing + Complexity of the financing process

The Cape Town Convention (CTC)

The Cape Town Convention is a global protocol that aims to provide a framework for the financing of aircraft equipment. The CTC was adopted in 1999 and has been ratified by over 60 countries, including India. However, despite being a signatory to the CTC since 2008, India has not yet ratified the convention. Key features of the CTC: + Provides a framework for the financing of aircraft equipment + Offers protection to lessors and lessees in case of default + Facilitates the sale of aircraft equipment

The Aircraft Equipment Financing Bill

The Aircraft Equipment Financing Bill aims to address the issue of aircraft equipment financing in India. The Bill ratifies the Cape Town Convention and provides a framework for the financing of aircraft equipment. The Bill also aims to simplify the financing process and reduce the cost of financing for airlines.

The Impact of IBC on Go First

The Insolvency and Bankruptcy Code (IBC) of 2016 has had a significant impact on the Indian aviation industry, particularly on airlines like Go First. The airline’s decision to initiate voluntary insolvency under the IBC has led to a freezing of its assets, including the aircraft. This move has significant implications for the airline’s operations, its lessors, and the overall industry. Key aspects of the IBC that have affected Go First: + Superseded international protocol for aircraft recovery + Prevented lessors from recovering aircraft + Frozen assets, including aircraft The IBC has been designed to provide a framework for resolving insolvency cases in an efficient and transparent manner. However, its application in the Indian aviation industry has been criticized for its potential to disrupt the industry’s fragile balance.

The Consequences of IBC on Go First’s Operations

The freezing of Go First’s assets, including the aircraft, has significant consequences for the airline’s operations. Some of the key implications include: