India Weekly: Aircraft Leasing Bill, Air India Order, Boeing Assembly Line, “Window Seat”

This week, Indian aviation focused on the introduction of a crucial aircraft leasing bill, Air India’s stance on Boeing’s follow-on order, Boeing’s perspective on an assembly line in India, and an IndiGo “window seat” without a window. Aircraft Leasing Bill Minister for Civil Aviation Ram Mohan Naidu introduced the Protection and Enforcement of Interests in Aircraft Objects Bill, 2025, in the Rajya Sabha (Upper House) of Parliament. This bill aims to make India compliant with the Cape Town Convention (CTC) and its Protocol. It will streamline the process for aircraft lessors to reclaim their planes swiftly in case of airline bankruptcy or as needed. The grounding of Go First in 2023, where over 50 planes were stranded in India because bankruptcy courts ruled that proceedings had to be completed before leased assets could be repossessed, caused considerable frustration within the leasing community. Once passed by both houses of Parliament, potentially within the next few weeks, the bill will allow lessors to regain custody of their planes within 60 days of completing formalities and settling any dues under a defined regulatory framework. "Introduced the Protection of Interests in Aircraft Objects Bill, 2025, in Rajya Sabha today," Naidu posted on X this week, adding, “This key reform strengthens aircraft financing, boosts investor confidence, and aligns with global aviation standards. It harmonizes India’s laws with the Cape Town Convention and Aircraft Protocol, ensuring a more secure and investor-friendly aviation sector. With this, we take a significant step toward making India a global aviation hub." Air India India’s oldest airline, Air India, has stated that it does not intend to exercise its Boeing plane options due to ongoing delays in aircraft deliveries from the manufacturer. "We don’t want to commit to anything until we know when the planes will arrive. Likewise, they (Boeing) don’t want to offer anything until they are confident about the delivery dates," CEO Campbell Wilson told Reuters in London. The airline had ordered 470 Airbus and Boeing aircraft in 2023, and in October, it firmed up options with Airbus for an additional 85 planes. It also allows the purchase of another 70 aircraft from Boeing, including 50 737 MAX and 20 787 Dreamliners. Boeing Boeing has indicated that it does not plan to accept India’s request to establish a final aircraft assembly line just yet. "The business case for a final assembly line in any region must be much larger than what the Indian market currently represents. It requires far more aircraft than India is purchasing today," said Boeing India and South Asia president Salil Gupte in an interview with Reuters. "We’ll have to monitor how the market evolves in India and the surrounding region. In the meantime, it’s all about building step-by-step capability to reach that point." However, Boeing emphasizes that final assembly constitutes less than 10% of an aircraft's total value. Gupte pointed out that the "real money" lies in other aspects of the production process, such as sourcing parts from India, which currently amounts to about $1.25 billion annually for Boeing alone. Boeing believes India, which has 1,800 planes on order, will need around 2,500 jets over the next 20 years to sustain its aviation growth. Airbus has established a final aircraft assembly line in India for its C-295 military cargo planes in collaboration with the Tata Group. Gupte made these comments at the five-day Aero India air show in Bengaluru. This year's star attractions included Russia's fifth-generation fighter, the Sukhoi 57, and its rival, Lockheed Martin's F-35. Both impressed audiences with their aerial performances. IndiGo Meanwhile, India’s largest airline, IndiGo, went viral again on social media after a passenger tweeted a photo of himself sitting in a “window seat” that didn’t have a window. Dei @IndiGo6E I paid for a window seat. Where is the window?" wrote Pradeep Muthu. As expected, comments flooded in, with one user humorously suggesting: "Bro, you should have carried a drill machine with you."

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