Air India is in talks with US aerospace titan Boeing to buy about 10 Boeing 737 MAX jets that were meant for mainland China carriers. The talks are unfolding as U.S.-China trade tensions have caused Chinese airlines to pull out of existing deliveries, two sources familiar with the matter told a news agency.
Earlier this week, Boeing CEO Kelly Ortberg confirmed the development, saying the company is realigning aircraft to other customers in an ‘expeditious manner’ as the tariffs ‘interrupt’ the delivery of these units to customers in China.
The narrow-body jets are being targeted by Air India, which is reportedly interested in adding the planes to its budget subsidiary, Air India Express, which already flies over 100 aircraft. If the deal materialises, the new planes will be inducted at the end of the year. However, the discussions remain in the relatively early stages, and none of the parties, including Air India, Air India Express or Boeing, have made official comments about the possible agreement.
Air India Express has previously bought white tail aircraft—planes built for one customer but reassigned to another—and this potential deal fits in with their past practice, one of the sources told CNN. A third source said there were also differences in jet configurations since the planes were designed for Chinese customers, which could affect the end pricing and final negotiation terms.
In the context of Air India’s ambitious plans for growth, the potential acquisition would be a plus point as the airline has faced capacity constraints, attributable to its insufficient supply of new aircraft. It could help accelerate the growth of their Express as well as the group’s presence in the highly competitive low-cost aviation segment.
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