Air India looks to buy Boeing jets rejected by China
What's the story
Air India is in talks to acquire Boeing jets that were recently returned by Chinese airlines.
According to media reports, two newly manufactured Boeing aircraft were rejected by China, due to increased costs stemming from the ongoing tariff dispute with the US.
The Tata Group-owned carrier is currently undergoing a significant fleet revamp as part of its broader expansion strategy.
In line with this, Air India has initiated discussions with Boeing to buy the aircraft originally intended for Chinese carriers.
Strategic move
Air India eyes future production slots vacated by China
Along with Boeing jets, Air India is keen on getting future production slots released by Chinese airlines.
This is amid uncertainty over China's stance on American aircraft.
This isn't the first time Air India has gained from China's exit.
By March, the airline had taken 41 Boeing 737 Max jets originally ordered by Chinese customers but deferred due to the model's global grounding in 2019.
Trade impact
China halts acceptance of Boeing jets amid trade tensions
China has also ordered its domestic carriers to stop accepting Boeing jets, after imposing reciprocal tariffs of up to 125% on US-made goods.
At the time, at least 10 aircraft were being prepared for Chinese delivery, Bloomberg reported.
Some completed 737 Max units have already been returned to the US.
Air India is now looking for more already-built Boeing 737 Max planes for its budget subsidiary Air India Express.
Expansion plans
Air India to receive 9 more Boeing 737 Max jets
Air India is scheduled to receive nine more Boeing 737 Max planes by June, bringing the total count to 50 jets.
The move comes as the airline looks to capitalize on the ongoing trade tensions between Washington and Beijing.
However, acquiring these aircraft may not be a straightforward process, considering potential pre-set cabin configurations by original customers and possible partial payments already made.
Operational changes
Air India plans to switch to all-economy class
To remain competitive, Air India intends to replace business class seating on the already received jets and switch to an all-economy class by April 2026.
However, this plan is being hindered due to supply chain issues.
The 140 narrowbody planes Air India ordered from Boeing in 2023 won't be delivered until after March 2026.
This makes it all the more crucial for the airline to secure any new planes it can now, not to fall behind IndiGo.