The Indian government has made significant amendments to its insolvency rules, aiming to shield leased aircraft from potential freezing during bankruptcy proceedings. This proactive move comes as a relief for aviation companies and lessors operating in India, providing a more secure environment for their valuable assets.

Under the revised regulations, leased aircraft will be excluded from the assets that can be frozen during insolvency proceedings. This means that in case of financial difficulties faced by an airline, the lessors' interests will be better protected, ensuring the continued operation and maintenance of these critical assets.

This development aligns with the broader goal of promoting the growth and stability of the aviation sector in India, which has faced several challenges in recent times, exacerbated by the global pandemic. By ensuring that leased aircraft remain operational and available for use, the government aims to bolster the resilience of the aviation industry.

These regulatory changes signal a more favourable environment for aviation leasing companies and should encourage further investment in the Indian aviation market, supporting its post-pandemic recovery.