Air India in talks with Boeing to acquire 10 planes rejected by Chinese buyers amid trade war - sources

Air India in talks with Boeing to acquire 10 planes rejected by Chinese buyers amid trade war - sources

Air India is reportedly in early discussions with Boeing to acquire around 10 Boeing 737 MAX planes that were originally intended for Chinese customers but have been rejected due to ongoing trade tensions between the U.S. and China. The planes could help Air India expand its fleet and services, particularly through its low-cost subsidiary, Air India Express [1].

The Boeing 737 MAX planes were initially ordered by Chinese airlines but are now being refused due to high tariffs imposed by both countries as part of their ongoing trade dispute. Boeing CEO Kelly Ortberg has confirmed that several Chinese customers are no longer accepting deliveries of aircraft due to these tariffs [1]. As a result, Boeing is redirecting these undelivered planes to other customers in need, with Air India being a potential beneficiary [1].

The acquisition of these planes could significantly bolster Air India's fleet, which has been slowed down due to delays in aircraft deliveries from both Boeing and Airbus. Last month, Air India CEO Campbell Wilson stated that the airline has been a "victim of circumstance" due to these delays, highlighting the importance of new aircraft in improving its domestic and international network [1].

While the talks between Air India and Boeing are still in the early stages, sources indicate that if a deal is reached, the planes could be added to Air India's fleet by the end of the year [1]. However, all three parties have not yet made any official statements or responded to media inquiries about the discussions.

Air India Express, with a fleet of over 100 planes, has experience in acquiring "white tail" aircraft, which are planes built for one airline but later sold to another. These planes may have different seating layouts or cabin fittings, which could impact the final cost of the deal and require modifications to match Air India's current fleet requirements [1].

The acquisition of these planes aligns with Air India's expansion plans, aiming to grow its fleet and services in the face of growing competition in the Indian aviation market. The trade tensions between the U.S. and China have created an opportunity for Air India to secure additional aircraft, potentially at a discounted price.

References:
[1] https://www.indiatoday.in/amp/business/story/air-india-may-buy-10-boeing-planes-turned-down-by-china-report-trump-tariff-announcement-us-china-trade-war-2715010-2025-04-25