In this April 2025 edition of our newsletter, we bring you a concise analysis of the rapid growth in India's civil aviation sector, now the world's third-largest domestic market. As the industry evolves to improve connectivity, enhance operational efficiency, and embrace sustainability, we highlight key regulatory changes, major infrastructure approvals, and recent legal precedents that are shaping the future of aviation in India and globally.
We hope this issue offers valuable insights as we continue to track the latest developments and opportunities in this dynamic sector.
A. Key updates – India
a. DGCA records strong air travel growth in its monthly report for March 2025
April 26, 2025- According to the Directorate General of Civil Aviation's ("DGCA") monthly report, Indian airlines recorded substantial growth in March 2025, as they carried 1.45 crore domestic passengers, which represents 8.79% increase in air passenger traffic compared to 1.33 crore domestic passengers in March 2024. The surge reflects a rising demand for air travel across the country.
IndiGo remained the market leader, flying 93.1 lakh passengers and capturing 64% of the market share. The Air India Group, comprising Air India and Air India Express, followed with 38.8 lakh passengers with 26.7% of the market share. Akasa Air and SpiceJet carried 7.2 lakh and 4.8 lakh passengers, securing 5% and 3.3% of the market, respectively. IndiGo also led in 'on-time performance' at 88.1% for March 2025, followed by Akasa Air at 86.9%, Air India Group at 82%, and SpiceJet at 72.1%.
Source: DGCA Website
b. Kempegowda International Airport achieves Level 5 carbon accreditation
April 24, 2025- Kempegowda International Airport ("BLR Airport") has become the first airport in Asia to receive Level 5 Accreditation under Airports Council International's ("ACI") Airport Carbon Accreditation programme. The recognition, which is effective from May 5, 2024, was announced during the ACI Asia-Pacific & Middle East Regional Assembly in New Delhi on April 17, 2025. It follows a verified 95.6% reduction in Scope 1 and 2 greenhouse gas emissions, enabling the airport to reach net-zero status for these categories seven years ahead of its 2030 target.
BLR Airport achieved this milestone by transitioning to 100% renewable electricity, adopting sustainable mobility and infrastructure practices and offsetting residual emissions through ACI-approved carbon units. The airport has committed to achieving net-zero emissions across all scopes, including Scope 3, by 2050.
Source: Press Information Bureau
c. IndiGo appoints former FAA Chief Michael Whitaker as Independent Director
April 24, 2025- InterGlobe Aviation, the parent company of IndiGo Airlines, has announced the appointment of Michael Whitaker, former Administrator of the U.S. Federal Aviation Administration ("FAA"), as an Independent Director on its Board.
Whitaker's induction comes as the term of current Independent Director and Chairperson, Venkataramani Sumantran, is set to conclude on May 27. Venkataramani Sumantran has opted not to seek re-appointment for a second term. With over three decades of experience in the aviation sector, Whitaker is also a licensed pilot and has previously held senior leadership roles, including Chief Operating Officer at Supernal (Hyundai's advanced air mobility division) and Senior Vice President of Alliances, International & Regulatory Affairs. He stepped down from his role at the FAA in January this year.
Source: IndiGo Website
d. SpiceJet to operationalize 10 Aircraft by April 2025 as part of fleet expansion plan
April 23, 2025 - SpiceJet Limited has announced that it will bring 10 grounded aircraft back into operation by April 2025, as part of its broader plan to scale its fleet to 75 aircraft by the end of the calendar year. This initiative is supported by a Rs. 3,000 crore capital infusion raised through a Qualified Institutional Placement which was conducted in accordance with SEBI regulations.
SpiceJet representatives have stated that this move aims to enhance both domestic and international connectivity while also improving operational efficiency and service quality. The re-induction of these aircraft marks a key milestone in SpiceJet's recovery strategy, signaling a shift toward financial and operational stability.
Source: 100Knots
e. AISATS inaugurates major On-Airport Logistics Park at Kempegowda International Airport
April 22, 2025 - AISATS BLR Logistics Park, one of South India's largest on-airport logistics parks, was inaugurated at Kempegowda International Airport ("BLR Airport"). The logistic park is developed with an investment of Rs 200 crore by Air India SATS Airport Services Private Limited ("AISATS"), with a facility that spans eight acres within the airport premises. AISATS, a joint venture between Air India Limited (part of the TATA Group) and SATS Limited, was selected by Bangalore International Airport Limited to design, build, finance, operate and maintain the logistics park for 15 years.
Source: AISATS Website
f. Air India Group routes USD 300 Million in aircraft lease payments through GIFT City
April 17, 2025- Air India Group has routed approximately USD 300 million in aircraft lease payments through its wholly owned leasing arm, AI Fleet Services IFSC ("AIFS"), based at IFSC GIFT City in Gujarat. The payments included USD 50 million which was made initially, followed by USD 250 million earlier in April.
AIFS, which manages the group's aircraft leasing operations, is being actively used to facilitate lease transactions through India's GIFT City financial hub. The move is in line with Air India Group's strategic use of the International Financial Services Centre (IFSC) to streamline and manage its growing fleet's leasing arrangements in a cost-efficient and regulatorily favorable environment.
Source: GIFT IFSCA Website
g. RIL-BP aviation fuel market share rises to 7.5 % on 62 % sales surge
April 17, 2025 – Reliance Industries ("RIL") and its partner British Petroleum have increased their share in India's domestic aviation turbine fuel ("ATF") market to 7.5% in FY 2024-25, up from 5% the previous year, according to industry data. The 2.5 percent point gain was driven by a substantial 62% rise in sales during the previous fiscal year.
RIL company executives have attributed the growth to competitive pricing, superior fuel quality and efficient servicing at airports, emphasizing that these factors enabled RIL-BP to strengthen their position in the highly competitive ATF segment, which has traditionally been dominated by state-run oil marketing companies.
Source: Economic Times
h. India to develop Indigenous 90-Seater Regional Aircraft by 2026
April 4, 2025 - India has announced plans to develop a locally manufactured 90-seater regional transport aircraft, marking a major stride toward self-reliance in aviation. Civil Aviation Minister Ram Mohan Naidu confirmed that the aircraft is expected to enter service by 2026, with the design phase already underway. The initiative is aligned with the government's broader vision to enhance regional connectivity, reduce dependency on imports and boost the Make in India initiative in the aerospace sector.
To further strengthen indigenous aviation capabilities, CSIR-National Aerospace Laboratories has signed a technology license agreement with Mumbai-based Pioneer Clean AMPS for the production and commercialization of the next-generation Hansa-3 (NG) two-seater trainer aircraft. The collaboration aims to translate homegrown research into market-ready aviation products, supporting skill development and expanding India's domestic aerospace manufacturing ecosystem.
Source- Press Information Bureau
B. Key International Updates
a. Airbus to acquire Key Spirit AeroSystems assets to strengthen aircraft supply chain
28 April 2025 - Airbus has entered into a definitive agreement with Spirit AeroSystems for the acquisition of several industrial assets tied to its commercial aircraft programmes. The strategic move is aimed at securing the stability of Airbus' supply chain and ensuring long-term sustainability for critical work packages.
Under the agreement, Airbus will take over Spirit facilities and operations in Kinston (U.S.), St. Nazaire (France), Casablanca (Morocco), Wichita (U.S.), Belfast (Northern Ireland), and Prestwick (Scotland), covering production of components for the A220, A320 and A350 aircraft. Spirit AeroSystems will pay Airbus USD 439 million as part of the adjusted transaction with completion expected in Q3 2025, subject to pending regulatory approvals. In addition, Airbus has also agreed to provide USD 200 million to Spirit AeroSystems in the form of non-interest-bearing credit lines, to support ongoing programme operations.
Source: Airbus Website
b. Airbus awards H130 Helicopter Fuselage contract to Mahindra Aerostructures
April 9, 2025 - In a major boost to India's aerospace manufacturing sector, Airbus Helicopters has awarded a contract to Mahindra Aerostructures Pvt. Ltd. for the production of the main fuselage assembly of its H130 helicopter. The move aligns with Airbus' strategic commitment to the 'Make in India' initiative and aims to strengthen the local helicopter ecosystem.
Under the agreement, Mahindra will manufacture the H130 fuselage in India, with deliveries to Airbus' European facilities scheduled to begin in March 2027. This marks a significant milestone for Mahindra, which already supplies parts for Airbus' commercial aircraft, as it expands into more complex aerostructure production. At present, Airbus sources USD 1.4 billion in components and services annually from India.
Source: Airbus Website
C. Significant developments
(a) India inaugurates State-of-the-Art Black Box Lab to enhance aviation safety
April 9, 2025 - The Digital Flight Data Recorder and Cockpit Voice Recorder (DFDR & CVR) Laboratory was inaugurated by Union Minister of Civil Aviation, Ram Mohan Naidu, at the Aircraft Accident Investigation Bureau ("AAIB") in New Delhi. The facility has been developed with an investment of INR 9 crore and it will support the investigation of aviation accidents and incidents by analyzing flight data and repairing damaged black boxes.
The lab was established with the support of Hindustan Aeronautics Limited and it will enable the AAIB to perform advanced data retrieval and analysis. The lab will also play a crucial role in correlating data from multiple sources, such as flight data recorders, cockpit voice recorders and radar systems in order to improve the accuracy of accident investigations. Additionally, it will help identify operational issues and suggest safety improvements based on the data analysis, ultimately contributing to enhanced aviation safety.
Source: Press Information Bureau
(b) Parliament passes Protection of Interests in Aircraft Objects Bill, 2025
April 30, 2025 – The Protection of Interests in Aircraft Objects Bill, 2025 was passed by the Lok Sabha on April 3, 2025, after being introduced in the Rajya Sabha on February 10, 2025. The Bill, now an Act after receiving the President's assent on April 16, will be enforced from May 01, 2025. The Protection of Interests in Aircraft Objects Act, 2025 ("Aircraft Objects Act") gives legal effect in India to: (i) the Convention on International Interests in Mobile Equipment (Cape Town Convention, 2001) and (ii) the Protocol to the Convention on Matters Specific to Aircraft Equipment. India became signatory to both instruments in 2008.
Key changes introduced by the Aircraft Objects Act:
- DGCA designated as Registry Authority responsible for registration, de-registration and issuing directions to implement the Convention.
- Debtors must submit records of dues to DGCA.
- Creditors may take possession of the asset within two calendar months (or shorter agreed period) after notifying DGCA of default.
- Detention rights retained by the central government, public service providers and inter-governmental organisations in case of unpaid dues.
- High Courts have given jurisdiction over claims under the Convention.
- The Aircraft Objects Act overrides conflicting laws, ensuring the Convention prevails where inconsistencies arise.
- Central government empowered to make rules for implementation, including procedures for DGCA and obligations of parties.
Source: Press Information Bureau
D. Key Judicial Precedents
a. NCLAT upholds liquidation of Go Airlines Ltd.
April 5, 2025 – The National Company Law Appellate Tribunal ("NCLAT"), New Delhi bench, comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member), and Arun Baroka (Technical Member), has upheld the decision of the Committee of Creditors ("CoC") to liquidate Go Airlines (India) Ltd. under the Insolvency and Bankruptcy Code 2016. The CoC had resolved to liquidate the corporate debtor after no compliant resolution plans were received and subsequently, the decision was passed with 100% voting support.
The NCLAT clarified that the revival of the corporate debtor through a scheme of compromise or arrangement under Section 230 of the Companies Act, 2013 remains open during the first 90 days from the liquidation order, which will last until April 20, 2025. The Tribunal also confirmed that the liquidation process, including the sale of assets as a going concern, would follow all relevant statutory provisions.
Go Airlines, which had been defaulting on payments and grounding a significant portion of its aircraft since 2022, had ceased operations and filed for insolvency under Section 10 of the IBC. Despite multiple attempts to revive the airline, the CoC's decision to liquidate was based on the absence of any viable resolution plan.
Source: Live Law
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