In a strategic move to accelerate its fleet expansion, Air India Ltd, owned by the Tata Group, is reportedly in talks with Boeing Co. to acquire passenger jets originally intended for Chinese airlines but left in limbo due to the ongoing US-China trade war, sources close to the matter revealed.
The Indian flag carrier, which is aggressively modernizing under Tata’s stewardship, is seizing this rare opportunity to strengthen its fleet by absorbing Boeing 737 Max jets that were sidelined after Beijing imposed reciprocal tariffs of up to 125 percent on US-made goods, forcing Chinese airlines to halt deliveries.
Air India’s Bid for Boeing Planes Gains Steam Amid Trade Disruption
The move comes as Chinese carriers have reportedly been instructed by the government to pause acceptance of Boeing aircraft, causing a backlog of jets that are now being eyed by other international airlines. Sources say Air India is not only keen to snap up the current aircraft left unsold but is also pushing for future delivery slots that might open due to the strained diplomatic ties between Washington and Beijing.
This is not the first time Air India has benefited from such disruptions. Up until March 2025, the airline had accepted 41 Boeing 737 Max jets originally destined for Chinese buyers, deliveries of which were indefinitely delayed following the model’s global grounding in 2019 after two tragic crashes.
Malaysia’s Interest and Boeing’s Shadow Inventory
It’s not just Air India eyeing the abandoned jets. Malaysia Aviation Group Bhd has also entered discussions with Boeing for delivery slots made vacant by Chinese airlines, Malaysian state news agency Bernama reported.
Boeing, one of America’s top exporters, finds itself grappling with the geopolitical headwinds. The US aircraft manufacturer had been readying about 10 jets for delivery to China before tariffs threw the handovers into disarray. Some 737 Max jets have already been shipped back to the US from China, awaiting new buyers.
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Due to the highly customized nature of aircraft cabin configurations and partial payments already made by the original Chinese buyers, the transfer of these jets to new customers poses logistical challenges. Boeing, under contractual obligations, cannot reassign planes still tied to Chinese carriers without resolving existing deals.
Air India Express Expansion and the IndiGo Challenge
Industry insiders indicate that Air India is especially interested in more 737 Max narrowbody aircraft to strengthen its Air India Express subsidiary, which is at the center of the airline’s low-cost strategy aimed at competing with India’s largest budget airline, IndiGo (operated by InterGlobe Aviation Ltd).
Air India was initially scheduled to receive nine more stored 737 Max aircraft by June 2025, raising its fleet to a total of 50 planes. However, the ongoing trade tensions may further extend this windfall, giving the Tata-owned airline a much-needed buffer as it races against supply chain delays and a pending order of 140 narrowbodies from Boeing, which won’t start arriving until post-March 2026.
The airline typically repaints these aircraft at its Bengaluru facility, and plans to convert their business class configurations to economy seating by April 2026. However, insiders warn that the retrofitting timeline is under pressure from global supply chain disruptions.
