Air India, Akasa Could Catch a Break as China Likely to Freeze Boeing Orders Amid Tariff War

Indian airlines, including Air India Express and Akasa Air, dealing with aircraft shortages, might find relief as the Chinese government asks its airlines to refrain from procuring Boeing aircraft to protect its aviation industry from US President Donald Trump’s 145% tariffs. Chinese airlines are awaiting delivery of over 100 Boeing 737 Max jets, Air India and Akasa, too have placed orders for the same model.  

“We anticipate some of these aircraft, originally destined for Chinese carriers, will be redirected to Indian customers. The previous year or two witnessed a similar occurrence with white tails,” TOI reported, citing an airline industry specialist.

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White-tail aircraft are planes built without a designated customer, often due to order cancellations. Air India Express had acquired 25 white-tail MAXs last year and was reportedly scheduled to receive 25 additional aircraft. To escape tariff heat from the US, China might increase its dependence on the European aircraft manufacturer Airbus. 

Top Chinese airlines, including Air China, China Eastern Airlines and China Southern Airlines had planned to take delivery of 45, 53 and 81 Boeing planes, respectively, between 2025 and 2027.

Apart from this China has also asked Chinese carriers to freeze purchase of aircraft-related equipment and parts from American companies to avoid higher costs amid tariff hikes, according to Bloomberg.

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The plane order placed by the Chinese carrier earlier might be directed by Boeing to meet its India target. Last year, Air India ordered 220 Boeing aircraft. Akasa Air has placed orders for 226 Boeing 737 Max. This might bring additional relief to Akasa Air, which has grounded over 310 pilots due to delays in delivery. According to Reuters, India’s youngest airline is holding “continuous discussions with Boeing” but the talks haven’t resulted in any solution. 

In fact, Akasa Air’s co-founder Aditya Ghosh reportedly said, “Boeing Bloody...retarding our speed”.