Air India in Discussions with Boeing to Acquire 10 Planes Rejected by China
Air India is currently in discussions with Boeing to acquire approximately 10 737 MAX jets, following reports that Chinese customers have begun rejecting deliveries amid ongoing trade tensions with the United States, according to two sources familiar with the negotiations who spoke to Reuters.
Boeing CEO Kelly Ortberg mentioned on Wednesday that "due to the tariffs, many of our customers in China have indicated that they will not take delivery," suggesting that the company could redirect these jets to other interested buyers.
The trade conflict between the United States and China, the two largest economies in the world, has resulted in each country imposing tariffs exceeding 100% on goods from the other.
The sources, who requested anonymity due to the confidential nature of the discussions, indicated that Air India is looking to acquire around 10 narrowbody aircraft from Boeing for its budget subsidiary, Air India Express, which operates a fleet of over 100 planes.
Neither Air India, Air India Express, nor Boeing responded immediately to requests for comments on the matter. One source noted, "Air India is very interested if the deal is finalized, the planes are expected to join the fleet by the end of the year," while emphasizing that the talks are still in the early stages.
Air India Express has a history of acquiring "white tail" aircraft jets originally manufactured for one customer but sold to another. A third source familiar with the negotiations mentioned that any differences in aircraft configuration between Air India Express's existing fleet and the incoming jets intended for Chinese customers could influence price discussions.
This potential acquisition could significantly support Air India's expansion efforts, which have been limited by a shortage of new aircraft. Last month, Air India CEO Campbell Wilson described the airline as a "victim of circumstance," referring to the delivery delays affecting both Boeing and Airbus.
