NEW DELHI- Air India (AI) has entered into preliminary discussions with Boeing to acquire approximately 10 Boeing 737 MAX aircraft originally destined for Chinese airlines, according to sources familiar with the negotiations.
This development comes as Chinese carriers begin rejecting aircraft deliveries amid escalating trade tensions between China and the United States.
Photo- BoeingAir India Boeing 737 Acquisition
Boeing CEO Kelly Ortberg confirmed on Wednesday that Chinese customers have indicated their unwillingness to take aircraft delivery due to recently imposed tariffs.
“Due to the tariffs, many of our customers in China have indicated that they will not take delivery,” Ortberg stated, adding that Boeing is now seeking to redirect these aircraft to other customers with immediate fleet needs.
The ongoing trade conflict between the world’s two largest economies has intensified, with both countries imposing punitive duties exceeding 100 per cent on each other’s products.
These tariffs directly impact commercial aircraft transactions, creating new challenges for Boeing’s delivery schedules and market strategy.
Two sources, speaking on condition of anonymity due to the confidential nature of the discussions, revealed that Air India (AI) is specifically targeting these aircraft for its budget subsidiary, Air India Express (IX).
The low-cost carrier already operates more than 100 aircraft and seeks to expand its capacity quickly.
“Air India is very interested… if the deal goes through, the planes are expected to be added to the fleet by the end of the year.”
A Source Disclosed, while emphasising that the negotiations remain in early stages
Photo: avgeekwithlens/ Harsh TekriwalAir India Express Fleet Expansion
Air India Express (IX) has previous experience acquiring “white tail” aircraft—planes manufactured for one customer but ultimately delivered to another.
This practice often involves negotiating price adjustments that reflect any configuration differences between the original specifications and the new operator’s requirements.
A third source familiar with the discussions noted that any variations between Air India’s existing fleet configuration and the specifications of the China-bound aircraft would likely factor into the ongoing price negotiations.
This potential acquisition aligns with Air India’s broader expansion strategy following its privatisation and acquisition by the Tata Group. The airline group has been actively working to modernise its fleet and expand its market presence both domestically and internationally.
From left to right: Campbell Wilson, Chief Executive Officer & Managing Director Air India; Stan Deal, President and CEO of Boeing Commercial Airplanes; N. Chandrasekaran, Chairman, Tata Sons and Air India; Stephanie Pope, President and CEO of Boeing Global Services; Nipun Aggarwal, Commercial & Transformation Officer, Air India (Photo: Boeing)Supply Chain Constraints
The move could significantly boost Air India’s growth trajectory, which has been hampered by industry-wide aircraft delivery delays. Last month, Air India CEO Campbell Wilson described the airline as a “victim of circumstance,” referring to the production and delivery challenges affecting both major aircraft manufacturers, Boeing and Airbus.
These supply chain constraints have created a highly competitive market for immediately available aircraft, making the China-rejected Boeing 737 MAX jets particularly valuable to airlines seeking rapid fleet expansion.
Neither Air India (AI), Air India Express (IX), nor Boeing immediately responded to requests for comment on the potential transaction.
Photo Compiled by Aviation A2ZBoeing Challenges Amid US-China Tensions
Boeing faces significant pressure as the U.S.-China trade conflict disrupts its global supply and delivery networks. The aircraft manufacturer must now navigate complex international tensions while attempting to maintain production schedules and financial stability.
The company has experienced substantial market volatility in China, previously one of its largest and most important markets. Chinese airlines have historically placed massive orders for Boeing aircraft, but political and economic tensions have transformed this once-reliable customer base into an uncertain market.
For Boeing, finding alternative buyers for completed aircraft represents both a necessity and an opportunity to mitigate financial losses. The redirection of these aircraft to Air India (AI) could help Boeing maintain delivery volumes while reducing the inventory costs of completed but undelivered aircraft.
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