Air India Eyes Undelivered Boeing Jets Meant for China Amid US-China Trade Tensions
Air India Ltd., under the ownership of the Tata Group, is reportedly in advanced discussions with Boeing Co. to acquire aircraft that were originally manufactured for Chinese airlines but remain undelivered due to ongoing trade frictions between the United States and China.
This development was reported by Bloomberg, citing sources familiar with the matter.
The move aligns with Air India’s broader strategy to modernize its fleet and expand aggressively in a competitive aviation market. The airline is positioning itself to capitalize on the disruption triggered by the escalating trade war between Washington and Beijing.
Tapping Into Grounded Inventory
According to individuals close to the negotiations, Air India has expressed interest in purchasing several Boeing jets that were being prepped for delivery to Chinese airlines.
These deliveries were halted after Beijing, responding to increased tariffs imposed by the U.S., directed domestic carriers to suspend acceptance of Boeing aircraft. Some of these reciprocal tariffs reached as high as 125%.
Air India is also keen on securing production slots for future Boeing aircraft deliveries, should they become available.
Bloomberg reported that as of March, Air India had already taken delivery of 41 Boeing 737 Max aircraft that were initially designated for Chinese carriers.
These planes had remained in limbo after the global grounding of the 737 Max in 2019 and subsequent trade complications. The airline is expected to receive an additional nine 737 Max jets by June, bringing the total to 50 aircraft.
Logistical and Operational Challenges
Reallocating these aircraft has been complicated for Boeing, as many of the jets had already been customized to meet the specifications of Chinese customers.
Additionally, some financial transactions related to those aircraft had already been completed, making reassignment to other airlines more complex.
Although both Boeing and Air India have declined to comment publicly, sources suggest that Air India Express, the budget arm of the carrier, stands to benefit significantly from the acquisition.
The airline is looking to reinforce its low-cost operations in a bid to rival market leader IndiGo.
Fleet Modernization in Focus
Air India CEO Campbell Wilson has recently acknowledged the challenges posed by outdated cabins and slow progress in refurbishment plans.
To stay price competitive and meet rising passenger expectations, the airline is planning to convert existing aircraft into an all-economy configuration by April 2026.
However, this transformation is being hampered by global supply chain issues, according to Bloomberg.
The current opportunity to acquire ready-built jets is particularly valuable, given that Air India’s 2023 order of 140 narrow-body planes from Boeing will not begin arriving until after March 2026.
Rising Regional Demand
Air India is not alone in its interest. Malaysia Aviation Group Bhd is also reported to be in talks with Boeing for delivery slots vacated by Chinese carriers, underscoring rising demand for aircraft in the Asia-Pacific region.
The broader implications of the US-China trade conflict continue to reshape the global aviation landscape. Boeing’s challenges in China have allowed its European rival, Airbus SE, to gain a stronger foothold in one of the world’s most important aviation markets.
As Boeing looks to reassign undelivered jets and Air India eyes rapid fleet expansion, this alignment of interests could accelerate the Indian carrier’s transformation and give Boeing an outlet for aircraft sidelined by geopolitical tensions.
