ABSTRACT
The India’s airline industry has experienced a quick transformation in the last 20 years, as flying in India changed from being a luxury for the few to an everyday choice for millions. Low-cost carriers made air travel affordable, regional connectivity schemes opened up smaller towns to flights, and more Indians began choosing planes over trains for long journeys. But even though there was growth, INDIA’S airline industry has witnessed significant financial turbulence in recent years, with leading airlines i.e., Kingfisher and Jet Airways collapsing under debt and operational challenges. This research paper provides an in-depth study of the legislations managing aviation insolvency in India, with a special focus on the incorporation of the CapeTown Convention 2001 and its Aircraft Protocol, 2008 into domestic law. Key legislations such as 2016 (IBC) code, civil aviation laws, the newly enacted The Protection of Interests in Aircraft Objects Act, 2025 are examined in detail. Through this paper an attempt is made to draw a comparison between India’s airline insolvency regime and global insolvency standards to figure out the positive aspects that can be borrowed from other jurisdictions and where the gaps still exist.
An understanding on how Indian courts have dealt at times of airline insolvencies when cases like – Awas Ireland v. DGCA (2015), Jet Airways (2019 and 2024), and Go Airlines (2023–24) come up before them. This comparative analysis showcases that by adopting the Cape Town Convention, how it has strengthened the domestic laws, enhanced creditors protection and narrowed the gap between Indian laws and global standards. Despite this, certain challenges still exist, especially with respect to its implementation on a day-to-day basis, lack of co-ordination in cases related to cross-border insolvency, and creating a balanced approach between protection and enforcement of creditors rights and raising the airline revival chances.
Keywords: Aviation Insolvency, Cape Town Convention, IBC,2016, Aircraft leasing, Cross-border insolvency, Airline Bankruptcy
