AerCap says better India plane reclaim rules to boost investor morale

Foreign investors would feel more confident about increasing their aircraft leasing business in India if the country firmed up legislation on the repossession rights of lessors, a top executive at AerCap Holdings said. Debate over the rights of lessors in India came to the fore last year when budget carrier GoFirst filed for bankruptcy, a move that blocked lessors from repossessing their aircraft. This sparked a confidence crisis among lessors who warned of rising leasing costs in future. Many are still embroiled in a legal battle to recover their assets. India in 2008 ratified the Cape Town Convention, an international treaty protecting rights of lessors over their aircraft in case of defaults by airlines, but has yet to pass a law. "Legislating the Cape Town Convention is going to give the confidence to the world that India understands what it takes to manage when foreign investors put mobile assets into a country," Suthesh Selvaratnam, vice president, leasing for Asia Pacific at AerCap told Reuters.<br/>