The recent voluntary filing for insolvency by Go First Airlines has led to the imposition of a moratorium under §14 of the Insolvency and Bankruptcy Code. This has also affected all of Go First’s fifty-three leased aircraft. In the absence of any specialised framework governing airline insolvency, the moratorium has disabled lessors from repossessing their aircraft, tarnishing India’s image in the international aviation market. In response, the government exempted such leased assets from the moratorium under §14(c) of the Code via a notification dated October 3, 2023. This move also clears space for the passage of the long overdue Cape Town Convention Bill, 2018, aimed at ratifying the Cape Town Convention. More importantly, it poses policy questions regarding the legislative options available to the government with regard to dealing with the impending question of repossession upon insolvency. This article, firstly, provides an overview of the aviation industry itself; secondly, it analyses the extant legal regime governing the repossession of aircraft in the event of airline insolvency, including the recent changes to the law; thirdly, it evaluates available policy alternatives to resolve the conundrum and concludes by suggesting an alternative that suits the Indian aviation sector.