THE PROTECTION OF INTERESTS IN AIRCRAFT OBJECTS RULES, 2026 : REGULATORY CLARITY OR CONTINUED TURBULENCE?

With the passing of the Protection of Interests in Aircraft Objects Act of 2025 and the January 2026 Rules,India reached an important milestone toward compliance with the Cape Town Convention. In light of the Go First insolvency and of the subsequent lack of domestic law to render the Treaty obligations at least somewhat enforceable, this article analyses the extent to which the 2026 Rules provide the regulatory certainty demanded by aircraft lessors and financiers. It focuses on the most important changes to the Rules from a previous, problematic draft. Of particular interest to this article are the narrowing of non-consensual lien categories, the transformation of a parallel register to an information system, and the introduction of the two month Alternative A waiting period. Though these changes are to be welcomed, this article also addresses the remaining interpretative voids, in particular, the virtue of the non-judicial remedy and the hierarchy of the Rules vis-à-vis the Insolvency and Bankruptcy Code, and compares India’s reform with similar instances in Ireland, the United States and the United Kingdom.