Air India, now owned by the Tata Group, is planning to take some Boeing aircraft that were originally made for Chinese airlines. According to people who know about the matter, Air India is looking to get these planes because it urgently needs more aircraft to expand and improve its services.

These planes were meant for delivery to China, but the handovers were stopped due to the growing trade war between the United States and China. China has placed high tariffs—up to 125%- on many US-made products, including airplanes. Because of this, Chinese airlines have been told not to accept Boeing aircraft.

Air India sees this as an opportunity. The airline is planning to talk to Boeing about getting these ready-made jets. It is also interested in taking future delivery slots if Chinese airlines continue to reject them.

This isn’t the first time Air India has benefited from the situation. The airline has already accepted 41 Boeing 737 Max aircraft that were originally made for China. These deliveries were delayed after the 737 Max model was grounded in 2019 following two deadly crashes. Boeing had built many of these planes before the grounding and later had to find new customers.

“Air India is interested in more of the already-made Max narrowbodies for its Air India Express unit,” said people familiar with the discussions.

The airline wants to grow Air India Express, its low-cost branch, to compete better with IndiGo, which is currently the largest airline in India.

China's loss could be Air India’s gain

The situation began when Boeing was preparing about 10 planes for Chinese airlines. But after the new tariffs, the deliveries were blocked. Some of the 737 Max planes that were in China have even been returned to the US.

Boeing is in a tough spot. The company cannot give any planes to new buyers if they are still under contract with Chinese airlines. Also, many of the planes were already customised for their original buyers. This means the seats, cabin layout, and other features were already decided. Changing them for a new buyer may be costly and time-consuming.

Still, the interest from airlines like Air India may reduce the short-term impact on Boeing, one of the biggest exporters in the US. Malaysia Aviation Group is also in talks with Boeing for delivery slots vacated by Chinese carriers.

Air India has plans to take nine more stored 737s by June, making the total 50 planes. The supply of these stored planes was expected to end soon, but now that China is stepping back, more planes might become available for India.

Once delivered, these planes are usually repainted in Bengaluru. Air India Express wants to change them into full economy class planes by April 2026, as they currently include business class seats. However, the process is moving slowly due to supply chain delays.

Meanwhile, Air India is also waiting for 140 new narrow-body planes that were part of its 2023 aircraft order. These deliveries will not begin until after March 2026. If Air India doesn’t get more planes before that, it might fall behind IndiGo in the competition.

Also, Air India is removing some aircraft temporarily from its fleet for retrofitting. It is also planning to phase out some older Airbus planes. This could slow down its growth even more.

Chief Executive Officer Campbell Wilson recently said that Air India is trying to attract more passengers with cheaper tickets because some of its aircraft still have old cabins. He said the company is working to upgrade them, but it’s taking time.

If Boeing continues to face problems selling planes to China, Air India may end up with more opportunities to quickly grow its fleet.

 

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