Air India is looking into the possibility of purchasing Boeing Co. planes that were initially meant for Chinese carriers. The airline aligns with other Asian carriers looking to benefit from the current trade conflicts between the United States and China caused by Donald Trump’s tariff actions.
The airline owned by the Tata Group needs more planes to aid its transformation initiatives. Sources familiar with internal talks informed Bloomberg that Air India plans to reach out to Boeing about a number of aircraft that were originally designated for Chinese airlines but have not been delivered because of tariffs related to trade.
The report indicated that Air India aims to obtain future deliveries of the aircraft if they are made available. The airline has earlier obtained planes intended for Chinese airlines, having taken delivery of 41 737 Max aircraft by March that were originally meant for Chinese carriers after the model's grounding in 2019.
As reported by Bloomberg News last week, Chinese airlines were instructed by the government to refrain from accepting Boeing planes after Beijing imposed reciprocal tariffs of up to 125% on products made in the U.S.
Aircraft that have already been built or are in the production process by Boeing present difficulties for potential buyers since cabin configurations are usually set by initial customers, with partial payments already submitted. The report stated that Boeing is still prohibited from assigning aircraft to new customers while their current agreements with Chinese airlines are active.
TOI reported that Indian airlines encountering difficulties in acquiring aircraft as a result of global supply chain issues could see relief after China's instruction to its airlines to refrain from buying Boeing.
We use cookies to ensure you get the best experience on our website. Read more...
