Air India is seeking to acquire a number of Boeing aircraft that were rejected by Chinese airlines, according to individuals familiar with the matter. These people, who requested anonymity due to the sensitivity of the discussions, said the Tata Group-owned carrier is in urgent need of aircraft to accelerate its revival and plans to approach the American aircraft manufacturer before reciprocal tariffs hinder any potential transfers.

The sources added that Air India is also open to securing delivery slots for future aircraft if they become available.

The airline has previously capitalized on China’s withdrawal, having accepted 41 Boeing 737 Max jets originally built for Chinese carriers by March. Deliveries had been delayed due to issues such as safety concerns over lithium batteries in cockpit voice recorders.

Representatives for both Air India and Boeing declined to comment. According to a report by Bernama on Sunday, Malaysia Aviation Group Bhd. is also in talks with Boeing to take over delivery slots vacated by Chinese carriers.

PLANES SENT BACK

As Bloomberg News reported last week, the Chinese government instructed local airlines to reject Boeing aircraft following Beijing’s imposition of retaliatory tariffs of up to 125% on U.S.-made goods. At the time, around ten aircraft were ready for delivery, and several 737 Max jets have since been returned to the U.S.

Aircraft that are already built or in the final stages of production present challenges for potential buyers, as many are configured according to the original customer’s specifications and may have partial payments already made.

Interest from non-Chinese carriers could help soften the short-term blow for Boeing—one of America’s most prominent exporters—if the tariff dispute continues. Nevertheless, the trade conflict may complicate Boeing’s plans to shut down the so-called “shadow factory” where the grounded 737s are currently stored. The U.S. manufacturer is expected to provide an update this week with its quarterly earnings report.

AIRBUS GAINS AN EDGE

The ongoing tensions between Washington and Beijing have provided European aircraft manufacturer Airbus SE with a competitive edge over Boeing in China in recent years. In the long term, however, the geopolitical landscape threatens to lock Boeing out of one of the world’s largest aviation markets.

AIR INDIA INTERESTED IN NARROW-BODIES

Air India is reportedly interested in acquiring additional 737 Max narrow-body jets that have already been manufactured, particularly for its low-cost subsidiary, Air India Express. The move is part of the group’s broader strategy to compete with IndiGo, operated by InterGlobe Aviation, which dominates the Indian market.

Typically, these jets are repainted in Bengaluru. Air India Express plans to convert the business class sections of its incoming aircraft to economy by April 2026, though progress has been hampered by supply chain issues.

Deliveries from Air India’s 2023 order for 140 narrow-body jets are not expected to begin until after March 2026. If the carrier fails to secure newly released Boeing jets, it risks falling further behind IndiGo.

Air India’s growth will also be constrained by a fleet enhancement program requiring the temporary withdrawal of some jets, as well as the planned phase-out of certain Airbus models. CEO Campbell Wilson stated last month that the airline is attempting to attract passengers with lower fares as it works to offset the impact of outdated cabins and upgrade delays.