Air India is reportedly exploring the opportunity to acquire Boeing aircraft originally intended for Chinese airlines, following escalating trade tensions between Washington and Beijing. The move comes as China halts further deliveries of US-manufactured Boeing jets, creating a window for India’s national carrier to expand its fleet.
Strategic Shift in Aircraft Acquisition
- Air India plans to approach Boeing for jets that were being prepared for Chinese carriers but remained undelivered due to tariff disputes.
- The airline is keen on securing future delivery slots, ensuring a steady supply of aircraft for its expansion.
- This isn’t the first time Air India has benefited from China’s pullback—by March 2024, it had already received 41 Boeing 737 Max planes originally built for Chinese airlines.
Impact of US-China Trade War
The ongoing tit-for-tat tariff war between the US and China has led to Chinese airlines rejecting Boeing aircraft, forcing the US manufacturer to reallocate deliveries.
- China has imposed 125% reciprocal tariffs on US-made goods, including aircraft.
- Approximately 10 Boeing planes were ready for delivery but have now been redirected.
Air India’s Expansion Plans
With 140 Boeing narrowbody aircraft ordered in 2023 set for delivery after March 2026, Air India is looking to secure additional jets to avoid falling behind competitors like IndiGo.
- The airline is expected to receive nine more Boeing 737 Max planes by June 2025, bringing its total fleet to 50 aircraft.
- Air India Express, its budget subsidiary, is set to replace business class seating with an all-economy layout by April 2026.
Challenges in Acquiring the Aircraft
While Air India is eager to capitalize on the situation, some hurdles remain:
- Cabin configurations for the rejected jets were already set by Chinese airlines, requiring modifications.
- Partial payments may have been made by the original buyers, complicating reassignment.
With Air India actively pursuing these aircraft, the airline is positioning itself to strengthen its fleet and compete more aggressively in the Indian aviation market.
