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Air India is looking to take advantage of the ongoing trade war between the United States and China by acquiring Boeing aircraft that Chinese airlines can no longer accept. As global tensions shift business opportunities, the Tata Group-owned airline is hoping to move quickly and secure more planes to support its big transformation plans.
According to people close to the matter, Air India is in discussions to acquire Boeing 737 Max jets that were originally meant for Chinese carriers but got held up due to new tariffs and government restrictions. These sources spoke on the condition of anonymity since the talks have not been made public yet.
Revival on Fast Track — and the Need for Planes
Air India is in the middle of a major revamp since being taken over by the Tata Group, and aircraft availability is a key part of that strategy. The airline needs more planes as soon as possible to compete with IndiGo, India’s largest airline, and grow its presence both domestically and internationally.
“Air India is also eager to take up slots for future deliveries should they become available,” said one of the sources familiar with the plan. The airline is especially interested in adding more 737 Max narrowbody jets to its low-cost arm, Air India Express, which is being positioned to directly take on IndiGo.
Planes Blocked by Tariffs Now Up for Grabs
The aircraft Air India is eyeing were originally built for Chinese airlines. But rising trade tensions between the US and China have thrown those deals into uncertainty. Recently, Beijing introduced tariffs of up to 125% on US-made goods, which reportedly led the Chinese government to block its airlines from accepting new Boeing planes.
At least 10 jets were ready for delivery when that decision came through, and some of them have now been sent back to the US.
While Boeing has not officially confirmed these transfers, insiders say several Asian airlines — not just Air India — are showing interest. Malaysia Aviation Group is also in talks with Boeing about picking up delivery slots abandoned by Chinese buyers, according to a recent report from Malaysian news agency Bernama.
There Are Some Hurdles Too
While this might seem like a win for Air India, it’s not all smooth flying. Aircraft that have already been built or are in the final stages often come with custom cabin layouts made specifically for the original buyer — in this case, Chinese airlines.
Changing those layouts to fit Air India’s needs could take time and money. Also, Boeing cannot transfer planes still under contract to their original buyers unless the contract is canceled or changed, which could further delay deliveries.
But Air India is reportedly willing to accept some of these planes as they are — or at least make minimal modifications — just to get them into the skies faster.
Already a Past Beneficiary of This Situation
This isn’t the first time Air India has stepped in to benefit from Boeing’s backlog of undelivered jets. As of March this year, the airline had already taken 41 Boeing 737 Max aircraft that were once destined for Chinese carriers. And according to Bloomberg, Air India was expected to receive about nine more by June — bringing the total to 50.
Those jets are typically repainted in Bengaluru, and for the ones that come with business class seating, Air India Express is planning to convert them to full economy class by April 2026. However, that work has been slowed down by global supply chain issues.
Bigger Orders Still Years Away
While these redirected aircraft help in the short term, they’re not enough to cover Air India’s full needs. The airline has a massive order of 470 new aircraft placed in 2023 — including 140 narrowbody planes — but those deliveries aren’t expected to begin before March 2026.
That delay could create challenges for Air India, especially as IndiGo continues expanding aggressively. Without more aircraft now, the airline risks falling behind in the race for market share.
To make things more difficult, Air India is also in the middle of a retrofit program to modernize its fleet. That means some planes are being taken out of service temporarily. On top of that, the company plans to phase out older Airbus aircraft, further squeezing available capacity.
Trying to Stay Competitive
Despite these hurdles, Air India isn’t giving up. In a recent statement, CEO Campbell Wilson acknowledged that cabin upgrades are taking longer than expected, but said the airline is doing what it can to win over customers.
“We’re trying to woo customers with cheaper fares as we seek to make up for dated cabins and upgrade delays,” Wilson said.
The Bigger Picture: Boeing, Trade Wars, and a Changing Global Market
For Boeing, which is one of the largest exporters in the US, the tensions with China have been a serious blow. Over the past few years, European rival Airbus has gained the upper hand in China, taking advantage of the geopolitical divide.
The current trade conflict is only making things worse for Boeing’s long-term presence in the Chinese market — one of the biggest in the world for commercial aviation.
The US planemaker has already built up an inventory of undelivered 737 Max jets, starting from their 2019 grounding following two fatal crashes. Delays due to the pandemic and further safety issues — including a recent pause by Chinese regulators over lithium batteries — have added to Boeing’s headaches.
Now, with China backing away, airlines like Air India are seeing an unexpected opportunity.
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