Air India has started discussions with the American aircraft manufacturer Boeing regarding the acquisition of approximately 10 737 MAX aircraft, following Chinese clients’ refusal to accept deliveries due to ongoing trade tensions with the United States.
Boeing CEO Kelly Ortberg had on Wednesday acknowledged, “due to the tariffs, many of our customers in China have indicated that they will not take delivery”, explaining that the company might redirect these aircraft to other interested customers.
The world’s largest economies, the United States and China, have imposed reciprocal tariffs exceeding 100% on each other’s goods.
Two sources involved in the confidential discussions told Reuters, Air India is looking to procure around 10 narrowbody aircraft from Boeing for its low-cost carrier Air India Express, which currently operates a fleet of more than 100 aircraft.
Air India has shown keen interest, and should the negotiations succeed, the aircraft are anticipated to join their fleet before the year concludes, according to the source, who noted that discussions were at a preliminary stage.
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Air India Express has a history of acquiring white tail aircraft – or aeroplanes originally manufactured for one client but subsequently purchased by another.
A third source knowledgeable about the discussions between Air India and Boeing indicated that any variations in aircraft configuration between their current fleet and the incoming aircraft intended for Chinese customers could influence the price negotiations.
This acquisition could significantly support Air India’s expansion strategy, as the group’s development has been limited by insufficient new aircraft.
Last month, Air India CEO Campbell Wilson acknowledged that the airline was a “victim of circumstance,” whilst discussing the delivery delays affecting both Boeing and Airbus.
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China’s snub to India’s advantage? Air India in talks to buy 10 Boeing planes rejected by Chinese airlines amid Sino-US tariff war
