AIR INDIA is seeking to acquire Boeing aircrafts originally destined for Chinese airlines, as escalating tariffs between Washington and Beijing disrupt planned deliveries, reported The Times.
The Tata-owned airline, currently working on its revival strategy, is interested in purchasing jets that Chinese carriers can no longer accept due to the recent trade dispute. According to reports, Tata is also keen to secure future delivery slots should they become available.
The opportunity arose after president Donald Trump increased US tariffs on Chinese imports to 145 per cent this month. In response, Beijing imposed retaliatory tariffs of up to 125 per cent on American-made goods and instructed Chinese airlines to refuse Boeing aircraft.
Industry sources believe Boeing's order book contains dozens of planes scheduled for delivery to Chinese customers. The trade tensions have already affected deliveries, with a Boeing 737 Max originally intended for China's Xiamen Airlines returning to Seattle on Sunday (20).
A second aircraft bound for a Chinese airline was also tracked heading back to the US on Monday (21), though it remains unclear which party initiated these returns.
Air India has previously taken delivery of 41 Boeing 737 Max jets that were initially built for Chinese carriers. The airline is particularly interested in acquiring more narrowbody aircraft for Air India Express, its low-cost subsidiary that competes with India's market leader, IndiGo.
The Chinese government is reportedly exploring options to support airlines that lease Boeing jets and now face higher costs.
Malaysia Aviation Group has also reportedly entered discussions with Boeing regarding delivery slots abandoned by Chinese carriers.
While interest from non-Chinese airlines might temporarily ease pressure on Boeing, one of America's highest-profile exporters, complications remain for potential buyers. Many aircraft have cabin configurations already set by the original customers, and partial payments may have been made.
Meanwhile, the ongoing trade friction between the US and China has created an advantage for European manufacturer Airbus in the Chinese market. In the longer term, these geopolitical tensions threaten to exclude Boeing from one of the world's largest aircraft markets.
When approached for comment, representatives from both Air India and Boeing declined to respond.
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