The Curious Case of Go First: The Need of the Applicability of the Cape Town Convention in India.

Abstract

The insolvency of Go First has reminded observers of the grim reality of the aviation industry, where a sequence of negative events leads to a crisis from which recovery becomes impossible. The subsequent insolvency proceedings and the lessors’ inability to recover their assets bring into the limelight the Convention on International Interests in Mobile Equipment (Cape Town Convention or Convention), which governs aircraft and other transportation assets and why India must implement the Convention’s provisions into its existing law. The Convention has been recognised by the judiciary and statutory laws, but the need for legislation remains. The author, with an analysis of Go First’s situation and the difficulty faced by the lessors, has made a case for legislation bringing the Cape Town Convention’s provisions into Indian law. This case comment also provides a succinct summary of important provisions of the Convention and how with necessary modifications and clarifications, the Indian aviation sector would benefit substantially from legislation that governs the relationship between the lessor and lessee of aircraft.