Air India Eyes Boeing Jets Amid US-China Tariff Tensions

| 2025-07-11 | Spotlight
Air India, Boeing, US-China trade war, Tata Group, aviation news, aircraft acquisition, Boeing 737 Max, Boeing 787 Dreamliner, India aviation, global trade tensions

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In a strategic move to strengthen its transformation efforts, Air India is exploring the acquisition of Boeing aircraft intended initially for Chinese airlines. This opportunity arises as trade tensions between the United States and China escalate, prompting Beijing to impose steep tariffs on American-made products, including aircraft.

According to sources familiar with the discussions, the Tata Group-owned airline is in talks with Boeing regarding several aircraft that were produced for Chinese carriers but remained undelivered due to geopolitical strains. Air India has previously benefited from a similar situation, having secured 41 Boeing 737 Max planes initially designated for China following the model’s grounding in 2019.

The potential acquisition could accelerate Air India’s fleet expansion plans. The airline is reportedly eyeing not just immediate availability but also future deliveries of aircraft that may become accessible as a result of the US-China tariff war. Malaysian carrier Malaysia Aviation Group is also reportedly negotiating with Boeing for delivery slots freed up by the impasse with China.

Air India In Touch With Boeing

Experts note that while obtaining these aircraft might be beneficial, there are challenges in terms of logistics. Interiors of these aircraft, previously tailored for Chinese carriers, would be problematic in terms of fulfilling Air India’s operational requirements. Moreover, outstanding contractual obligations in place with Chinese airlines complicate the reallocation process until duly settled.

Significantly, nearly 100 Boeing 737 Max aircraft and 11 Boeing 787 Dreamliners remain in limbo, initially destined for Chinese carriers. Indian carriers, such as Air India Express and Akasa Air, stand to gain from redirected deliveries, particularly in the face of worldwide aircraft supply constraints that have impacted fleet growth plans.

For carriers such as Akasa, which is experiencing pilot overcapacity from delayed deliveries, the availability of these planes could be a welcome shot in the arm. Both Akasa and Air India Express have reportedly got the financial wherewithal to take on more aircraft right away, if the chance presents itself.

Experts observe that India stands to gain strategically from the ongoing trade turbulence, positioning itself as a preferred destination for reallocated manufacturing and aviation assets.

Also Read: Air India Upgrades Fleet with Refurbished Boeing 777-300 ER

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