Air India Eyes Boeing 737 MAX Jets as China Backs Out Amid Trade Tensions

Air India is reportedly in early talks with Boeing (NYSE:BA) to acquire around 10 737 MAX aircraft, as Chinese customers reject deliveries amid escalating U.S.-China trade tensions. The move comes as Boeing seeks alternative buyers for jets originally destined for China, where tariffs exceeding 100% have disrupted aviation deals.

Boeing CEO Kelly Ortberg confirmed on Wednesday that many Chinese customers have declined deliveries due to ongoing tariffs. As a result, the planemaker is exploring options to redirect the aircraft to other clients, including India’s flag carrier.

According to two sources familiar with the discussions, Air India is looking to secure the aircraft for its low-cost subsidiary, Air India Express, which operates a fleet of over 100 planes. The airline group has faced delivery delays from both Boeing and Airbus, prompting CEO Campbell Wilson to describe it as a “victim of circumstance” last month.

The potential deal would support Air India’s aggressive expansion strategy, especially as it aims to grow its presence in the budget travel segment. If finalized, the aircraft could be integrated into the fleet by year-end.

Notably, Air India Express has previously accepted “white tail” jets—aircraft originally built for one airline but reassigned to another. A third source noted that any discrepancies in aircraft configuration between the Chinese orders and Air India’s existing fleet could influence final pricing.

Neither Boeing nor Air India has commented publicly on the potential deal, but the negotiations signal a timely opportunity for the Indian carrier to enhance capacity while Boeing seeks to mitigate trade-related disruptions in Asia.

The deal highlights shifting global aviation dynamics, with India potentially benefiting from geopolitical trade shifts that are reshaping aircraft supply chains.