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Air India Tries to Grab Boeing Jets Rejected by Chinese Airlines Amid Trade Tensions
Air India is trying to fast-track its fleet expansion by acquiring Boeing jets originally meant for Chinese airlines but held back due to US-China trade tensions.

Air India is trying to benefit from the ongoing trade tensions between the United States and China. According to Bloomberg, the airline plans to buy Boeing planes that were originally built for Chinese carriers but are now undelivered.

Air India needs planes fast

The airline urgently needs new aircraft to keep up with other Indian carriers. As the Indian aviation market grows, competition is getting tougher. So, Air India wants to expand its fleet quickly. It has shown interest in acquiring Boeing jets that never reached Chinese customers due to the worsening trade war.

Air India approaches Boeing

According to Bloomberg, Air India plans to contact Boeing directly. The goal is to secure planes that were almost ready for Chinese airlines before tensions stopped deliveries. Some people close to the matter confirmed this but chose to remain anonymous due to the sensitive nature of the deal.

Air India also wants future deliveries

Besides the ready aircraft, the airline also hopes to get future delivery slots if they become available. After the Chinese government reportedly told its airlines not to accept Boeing aircraft, nearly 10 jets were ready for delivery. Some 737 Max planes in China have even been returned to the US, Bloomberg reported.

This isn’t the first time

Earlier this year, Air India took advantage of a similar situation. By March, it had received 41 Boeing 737 Max aircraft that were originally built for Chinese customers. Those jets were not delivered due to the 2019 grounding of the 737 Max model.

Focus on Air India Express

Air India wants these jets mainly for Air India Express, its budget airline. This brand helps Air India compete with IndiGo, which currently dominates domestic travel. Bloomberg reported that nine more 737 Max jets are scheduled to arrive by June. That will bring the fleet to 50 aircraft.

Earlier, many thought Boeing’s stock of undelivered jets would run out. However, ongoing US-China tensions might release more planes for sale. Air India wants to convert some of its new aircraft into all-economy class. The airline aims to remove business class seats by April 2026. However, supply chain issues are causing delays in making those changes.

New orders won’t arrive soon

In 2023, Air India placed an order for 140 narrowbody Boeing aircraft. Unfortunately, Boeing won’t deliver them until after March 2026. That’s why the airline is trying to grab whatever aircraft it can now to avoid falling behind competitors like IndiGo.

Legal hurdles still remain

Boeing might not be able to hand over these jets easily. Many aircraft were already configured to meet Chinese airline requirements. Some payments may also have been made. So, Boeing can't just reassign those jets to new buyers without sorting out those earlier contracts.