New Delhi: In what could be India’s first significant benefit from the ongoing US-China tariff standoff, Air India Ltd is exploring the possibility of acquiring Boeing Co aircraft originally destined for Chinese carriers, according to people familiar with the matter.
The Tata Group-owned airline, which is undergoing an aggressive expansion and modernization push, is reportedly in discussions with Boeing to secure planes that were being prepared for delivery to Chinese airlines before escalating trade tensions disrupted the transactions. Sources close to the talks, who requested anonymity due to the confidential nature of the discussions, confirmed the carrier’s intent.
Air India is particularly interested in acquiring Boeing 737 Max jets — many of which have already been manufactured — and is also looking to secure future delivery slots that may be vacated by Chinese carriers. The airline has already benefited from similar circumstances in the past, accepting 41 737 Max aircraft previously allocated to China through March of this year.
Neither Air India nor Boeing have officially commented on the matter. Meanwhile, Malaysia Aviation Group Bhd is also reportedly in talks with Boeing for aircraft deliveries delayed by China, according to Bernama.
Recent developments saw Beijing instruct Chinese airlines not to accept Boeing aircraft after imposing reciprocal tariffs of up to 125% on US-made goods, as reported by Bloomberg. This move disrupted the delivery of approximately 10 aircraft and led to the return of some 737 Max jets from China to the US.
However, acquiring these aircraft is not without challenges. Many of the jets were configured specifically for Chinese customers, and financial arrangements may already be in place, complicating any reassignment to new buyers. Boeing is also restricted from reallocating any planes still contractually tied to Chinese carriers.
Despite these hurdles, interest from non-Chinese carriers like Air India could ease Boeing’s short-term concerns. The US aerospace giant has been attempting to offload a large inventory of undelivered 737 Max aircraft, initially grounded due to safety concerns and later delayed by the pandemic and regulatory hurdles — including scrutiny from Chinese authorities.
Air India is especially keen to secure additional 737 Max narrowbody jets for its low-cost arm, Air India Express, as it looks to take on market leader IndiGo, operated by InterGlobe Aviation Ltd. The airline was expected to receive around nine more previously-stored 737s by June, bringing the total to 50. This number could increase further in light of the shifting geopolitical landscape.
These aircraft are typically refurbished and repainted in Bengaluru. Air India Express plans to convert any business class configurations to economy by April 2026, although progress has been slowed by supply chain constraints.
With deliveries from its massive 2023 order — including 140 narrowbody aircraft — not expected to begin before March 2026, Air India risks lagging behind competitors unless it can secure additional aircraft in the interim. Compounding this challenge are retrofit plans that will temporarily reduce its active fleet and the phasing out of older Airbus models.
To stay competitive, Air India CEO Campbell Wilson recently said the airline is attracting passengers with more affordable fares, even as it works to modernize cabins and overcome delays in fleet upgrades.
As trade tensions reshape global aircraft supply chains, Air India could continue to benefit, strengthening its hand in the increasingly competitive Indian aviation market.
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