Air India seized the opportunity in the US-China tariff war? Take Action to Reject Boeing Jets – Details Here

Bloomberg reported that Air India has taken action to take on Boeing jets that were rejected by Chinese airlines due to Donald Trump’s tariffs, amid the escalating trade war between the United States and China.

It added that India’s largest airline, owned by Tata Group, is currently in trouble with other Asian airlines, who are trying to benefit from the trade relations between the United States and China.

Air India buys Boing jets? What we know so far…

According to the report, Air India is seeking a revival plan of a “freshly needed aircraft” and will tap Boeing to take a rejected aircraft. Sources added that Air India is also open to occupy future slots, and these slot machines can be used for delivery.

It is worth noting that Air India was one of the beneficiaries when Donald Trump last took office and launched a trade war with China in 2019 – it accepted about 47 Boeing aircraft (737 Max Jets), originally built for Chinese airlines.

Air India and Boeing did not respond to questions.

The report cites publications from local Bernard and adds that in addition to Air India, Malaysia Airlines Group Co., Ltd. has also made an offer.

Why does Air India need new aircraft?

Sources told Bloomberg that Air India is interested in more of its already-made Max Narrowbodies from its low-cost Indian Express subsidiary as it tries to challenge rival Indigo.

Air India plans to get about 737 seconds of storage in June, bringing the total to 50 aircraft, according to reports earlier this month. The pool is expected to dry in a few months, but Air India’s Boeing windfall may continue as the U.S.-China tariff war recasts the landscape.

These aircraft are usually repainted in Bangalore. Air India Express intends to replace the business class the economy receives by April 2026, but progress in supply chain issues has slowed down.

The remaining 140 narrow bodies are delivered from Air India’s 2023 orders and will not start until after March 2026, and the airline has the potential to lag further behind Indigo if any newly released Boeing aircraft cannot be secured.

Air India’s growth will also slow as the renovation plan will temporarily remove some jets from its fleet and plans to phase out some Airbus models. CEO Campbell Wilson said last month that the company was trying to attract customers with cheaper fares to make up for outdated cabins and upgrade delays.

China rejects Boeing aircraft: Background

Bloomberg News reported that the government told Chinese airlines not to accept Boeing aircraft. At that time, about 10 planes were preparing for delivery, and since then, about 737 Max Jets from China were sent back to the United States.

Any Boeing aircraft that has been built or ongoing will cause complications for potential buyers, as the original customer has set up cabin configurations for many and some payments will be made. Boeing cannot place any aircraft by any new owner who still belongs to a contract with a Chinese airline.

If the tariff war continues, interest from non-Chinese airlines is likely to mitigate Boeing’s short-term blow, one of the high-profile U.S. exporters. Still, the trade conflict could complicate the so-called Shadow Factory efforts stored this summer for the 737s. U.S. manufacturers are expected to provide latest information on the situation in the week’s quarterly results.

Frictions between Washington and Beijing have made Europe’s Airbus SE better than Boeing in the past few years. In the long run, geopolitics has the potential to shut down Boeing from one of the world’s largest aircraft markets.

Boeing has built inventory of hundreds of unpractically unworked 737 Max jets, starting with its grounding, which were two fatal accidents and continue to pass the pandemic. The regulator in Beijing was the last to clear the aircraft, and other issues slowed down delivery, leading U.S. planners to eventually start remarketing the aircraft. Last year, Chinese regulators suspended 737 delivery times for two months due to concerns about lithium batteries in cockpit recorders.

(with Bloomberg input)