India joins Cape Town Convention on aviation credit

New Delhi, Nov 26 (UNI) The Union Cabinet today approved the accession of the Cape Town Convention/Protocol by India which would facilitate availability of aviation credit at a cheaper rate.

The protocol provides an international legal and institutional framework for creation, prioritisation and enforcement of international interests in aircraft, which greatly facilitate cross- border financing and leasing of aircraft.

It would provide greater confidence to the intending creditors, reduction of risk applicable to asset-based financing and leasing transactions, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters.

The risk reduction would not only result in the availability of aviation credit at a cheaper rate, but would also broaden the spectrum of financing alternatives available to the aircraft operators.

This would be of immense help to the Indian aviation industry. It would also help the passengers and other end users by the pass-through price reductions and increased levels of service.

UNI