Air India Ltd. is in talks with Boeing Co. to acquire aircraft intended for Chinese carriers but left undelivered due to ongoing trade tensions between Washington and Beijing, Bloomberg has reported, citing people familiar with the matter.
The potential acquisition forms part of the Tata Group-owned airline’s broader strategy to overhaul its fleet and expand rapidly, to keep pace with competitors. And they are looking to benefit from the disruption caused by the tit-for-tat tariff war between the United States and China, the report said.
According to sources, the Indian carrier has approached Boeing to acquire several jets that were being readied for Chinese carriers before fresh tariffs stalled their delivery.
The airline is also keen to secure slots for future production should they become available.
The interest stemmed from a directive issued by the Chinese government instructing domestic airlines not to accept aircraft from Boeing, following the imposition of reciprocal tariffs of up to 125 per cent on American goods.
Bloomberg further noted that through March, Air India had already accepted 41 Boeing 737 Max jets that were built for Chinese carriers but whose deliveries were deferred due to the model’s global grounding in 2019.
Air India is set to receive nine more Boeing 737 Max aircraft by June, which will bring its total to 50.
Boeing faced constraints in reallocating these aircraft to other buyers, as cabin configurations may have been customised for the original Chinese clients, and some payments may have already been made.
Representatives for both Air India and Boeing have declined to comment on the matter.
Air India’s budget arm, Air India Express, is a beneficiary in the current move, sources told Bloomberg.
The carrier is interested in acquiring more of the already-built Boeing 737 Max planes to strengthen its low-cost operations, positioning itself as a competitor to IndiGo.
Chief Executive Officer Campbell Wilson recently said that Air India was attempting to attract customers with cheaper fares, as it deals with outdated cabins and delays in upgrades.
To remain competitive, the airline plans to convert its existing jets to an all-economy class configuration by April 2026.
But this transition is facing hurdles due to global supply chain disruptions, according to Bloomberg.
Air India had ordered 140 narrowbody planes from Boeing in 2023 that will arrive after March 2026.
This delay makes the current opportunity to secure new aircraft even more critical.
Bloomberg also reported that Malaysia Aviation Group Bhd. was in discussions with Boeing over similar delivery slots vacated by Chinese carriers, indicating growing interest among Asian airlines.
The broader impact of the US-China tariff war continues to cast a long shadow over Boeing’s presence in China, ceding ground to European rival Airbus SE in one of the world's largest aircraft markets.