Air India in Talks to Acquire 10 Boeing 737 MAX Jets Rejected by China

In the midst of ongoing trade hostilities between the world’s 2 largest economies, the United States and China, Boeing has encountered a fresh setback. Several Chinese customers have declined to accept delivery of 737 MAX aircraft, citing steep tariffs that have made imports increasingly unviable. With duties exceeding 100% imposed by both nations, Boeing is now looking to redirect these undelivered jets to alternative buyers.

Air India Steps Into the Picture

According to sources cited by Reuters, TATA Group-backed Air India is exploring the possibility of acquiring around 10 of these 737 MAX aircraft. While discussions are said to be in early stages, one person familiar with the matter noted that, should the deal go through, these jets could be added to Air India’s fleet by the end of the year.

This move could align well with the airline’s broader growth strategy, particularly as it faces constraints due to delays in the delivery of new aircraft from both Boeing and Airbus.

Not the First Time: A History with White Tail Jets

The concept of acquiring “white tail” aircraft—jets originally built for one customer but sold to another—is not new to the Tata Group-owned airline. Air India Express, its low-cost arm, has previously accepted such aircraft into its fleet. This practice allows airlines to bypass long delivery queues and quickly expand their operational capacity.

Read More: India Mulls 10% Cap on Chinese Equity in Electronics JVs. 

Configuration Differences May Influence Pricing

One potential challenge lies in the configuration of the aircraft. Since the jets were initially designed to meet Chinese carrier requirements, some modifications may be needed to align with Air India’s fleet standards. Sources suggest that these differences could play a significant role in the pricing negotiations, as any required retrofitting or cabin redesign would come at a cost.

Conclusion

Air India has been vocal about the setbacks caused by global aircraft delivery delays. Last month, CEO Campbell Wilson described the airline as a “victim of circumstance”, pointing to bottlenecks faced by manufacturers. Acquiring these ready-to-fly jets could offer a timely and much-needed boost to the airline’s fleet modernisation and expansion plans.

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