Advantage India in US-China tariff war: Air India eyes Boeing jets refused by Chinese airlines
Air India is exploring opportunities to acquire Boeing Co. aircraft originally intended for Chinese airlines. The airline joins other Asian carriers seeking advantages from the ongoing trade tensions between the United States and China due to Donald Trump’s tariff moves.
The Tata Group owned airline requires additional aircraft to support its transformation efforts. Sources familiar with internal discussions told Bloomberg that Air India intends to contact Boeing regarding several aircraft that were initially prepared for Chinese carriers but remained undelivered due to trade-related tariffs.
The report said that Air India is interested in securing future deliveries of the aircraft if they become available. The airline has previously acquired aircraft meant for Chinese carriers, having received 41 737 Max aircraft through March that were originally destined for Chinese airlines following the model’s grounding in 2019.
Separately, Bernama reported on Sunday that Malaysia Aviation Group Bhd. is also discussing potential delivery slots with Boeing that were previously allocated to Chinese carriers.
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According to Bloomberg News reports last week, Chinese airlines received governmental instructions to avoid accepting Boeing aircraft after Beijing implemented reciprocal tariffs reaching 125% on American-made products. Approximately 10 aircraft were in preparation for delivery at that time, with some 737 Max aircraft in China subsequently returning to American soil.
Aircraft already manufactured or in production by Boeing pose challenges for prospective buyers, as cabin layouts are typically predetermined by original customers, and partial payments have been made. Boeing remains restricted from allocating aircraft to new buyers whilst existing contracts with Chinese airlines remain valid, the report said.
Last week, TOI had reported that Indian airlines facing challenges in aircraft acquisition due to global supply chain constraints might find relief following China’s directive to its airlines to avoid Boeing purchases.
Chinese airlines currently await delivery of roughly 100 B737 MAX – the same model sought by Air India Express and Akasa – and 11 B787 Dreamliners, which Air India has ordered.
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“We anticipate some of these aircraft, originally destined for Chinese carriers, will be redirected to Indian customers. The previous year or two witnessed a similar occurrence, with white tails (aircraft manufactured for specific customers but acquired by others) being allocated to AI Express and Akasa,” said airline industry specialists.
The delay in Boeing aircraft deliveries has created substantial difficulties for India’s newest airline Akasa, which currently employs more pilots than required for its present and immediate future operations, leading to frustration amongst inactive flight crew. Both Tata group AI Express and Akasa possess adequate financial resources to accept additional aircraft if they become available now.
