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Updated: April 25, 2025 07:23
Air India is negotiating with Boeing to acquire approximately 10 Boeing 737 MAX jets originally destined for Chinese airlines, according to sources familiar with the discussions. The move comes as Chinese carriers reject deliveries amid escalating tariffs in the US-China trade conflict, offering Air India a strategic opportunity to accelerate its fleet expansion.
The Tata Group-owned airline aims to deploy these narrowbody aircraft for its low-cost subsidiary, Air India Express, which operates over 100 planes and competes directly with IndiGo. If finalized, the deal could see the jets integrated into the fleet by late 2025, bolstering the airline’s capacity to meet rising domestic and international demand.
This isn’t the first time Air India has capitalized on China’s aviation setbacks. The airline previously absorbed 41 Boeing 737 MAX jets in 2024-25 that were initially built for Chinese customers but deferred after the model’s global grounding in 2019. With an additional nine 737 MAXs slated for delivery by June 2025, Air India Express’s fleet could soon total 50 narrowbody aircraft.
The ongoing US-China trade war, marked by reciprocal tariffs exceeding 100%, has left Boeing scrambling to reroute jets. At least 10 aircraft ready for Chinese delivery are now in limbo, with some already returned to the US. Air India’s interest extends beyond immediate acquisitions, as it eyes future delivery slots vacated by Chinese carriers to fast-track its $70 billion modernization plan.
However, challenges persist. Aircraft configured for Chinese airlines may require costly retrofits, potentially complicating pricing negotiations. Meanwhile, Malaysia Aviation Group is also in talks with Boeing for similar opportunities, signaling a broader shift in Asia’s aviation dynamics as carriers exploit geopolitical tensions for fleet gains.
Source: Reuters, Bloomberg, The Economic Times
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