Air India is in negotiations with Boeing to acquire approximately 10 Boeing 737 MAX jets that Chinese airlines have declined. According to Insider Monkey, the aircraft were initially earmarked for Chinese carriers but were rejected amid rising trade tensions and significant tariffs between the U.S. and China.
The decision by Chinese airlines to forgo these planes comes after Beijing imposed retaliatory tariffs of up to 125% on U.S. exports, including aircraft, which stalled Boeing deliveries to China. As reported by sources, this situation is not new for Air India, which had previously taken advantage of this trade fallout by receiving 41 similar planes through March, enhancing its operational capacity.
Air India's urgent requirement for more aircraft aligns with its plans for strategic growth and transformation under the ownership of the Tata Group. The airline's need to accelerate its revival has pushed it to pursue these additional planes. Meanwhile, Malaysia Aviation Group Bhd is also exploring opportunities to acquire delivery slots freed by the Chinese rejection, indicating competitive interest from other global airlines in these available aircraft.