Air India Eyes Boeing Jets Rejected by China Amid Trade War Tensions

In a bold move driven by opportunity and urgency, Air India Ltd, now under the Tata Group’s ownership, is reportedly exploring the acquisition of Boeing aircraft originally built for Chinese carriers. This shift comes in the backdrop of escalating US-China trade tensions, presenting a window for Asian carriers like Air India to capitalize.

From Rejection to Revival: What’s Happening?

Air India is actively looking to acquire Boeing 737 Max jets that were meant for Chinese airlines. As geopolitical friction intensifies, these aircraft are now idle, and Air India sees potential.

Why is Air India interested?

• Rapid fleet expansion to support its revival strategy

• Quick access to aircraft without long manufacturing delays

• Potential cost savings from redirected deliveries

• Strategic boost to its low-cost arm, Air India Express, to compete with IndiGo

The Big Picture: Planes, Politics, and Opportunity

Here’s how the situation shapes up:

Challenges in the Sky

While the opportunity is substantial, several complications remain:

• Pre-set cabin configurations designed for Chinese carriers may not match Air India’s requirements

• Some payments may have already been made by the original Chinese buyers

• Aircraft still under contract with Chinese carriers cannot be reassigned immediately

• Retrofitting delays due to global supply chain disruptions

A Global Trend: Others Are Lining Up Too

Air India isn’t alone in this race. Malaysia Aviation Group Bhd is also reportedly in talks with Boeing to secure vacated delivery slots originally intended for Chinese airlines. As China distances itself from Boeing, Airbus—its European competitor—has gained a stronger foothold in the region.

Boeing’s Bumpy Road to Recovery

The Boeing 737 Max has faced a challenging journey:

• Grounded worldwide in 2019 following two fatal crashes

• Delayed clearance in China compared to other countries

• Delivery halt in 2023 over lithium battery concerns in cockpit recorders

• Backlog of unsold jets slowly being released to non-Chinese customers

What It Means for Air India’s Future

Air India still awaits 140 narrowbody aircraft from its massive 2023 Boeing order, with deliveries not expected until after March 2026. In the meantime, grabbing already-built jets provides a critical lifeline to avoid falling behind market leader IndiGo.

However, Air India’s growth will be temporarily curbed due to:

• Aircraft undergoing cabin retrofits

• Plans to phase out certain older Airbus models

CEO Campbell Wilson recently noted that Air India is relying on competitive fares to retain passengers as it addresses older cabin interiors and delays in upgrades.

FAQs

1. Why is Air India targeting aircraft meant for Chinese airlines?

Air India sees an opportunity to fast-track its fleet expansion by acquiring Boeing jets originally designated for Chinese carriers, which were halted due to US-China trade tensions.

2. How many aircraft has Air India already received?

By March 2025, Air India had taken delivery of 41 such aircraft, with around 9 more expected by June.

3. What are the main challenges in acquiring these jets?

The aircraft may have custom specifications for Chinese airlines, some financial transactions may already be underway, and not all planes are immediately transferable due to contract restrictions.

4. How does this impact Air India’s competitive edge?

With delayed deliveries from its official order, acquiring these redirected jets helps Air India strengthen its fleet—particularly for its low-cost carrier, Air India Express—to better compete with dominant player IndiGo.

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