Air India’s Fleet Expansion Could Get a Boost from China’s Boeing Rejection

Air India is eyeing to purchase Boeing aircraft rejected by Chinese airlines due to increasing pressure from Beijing’s government to protect its aviation industry, Bloomberg reported. The Chinese carriers had ordered these aircraft from the US manufacturer before President Donald Trump slapped reciprocal tariffs on imports from China. While the two major economies are engulfed in a trade war, Tata Group airline might find its wings in the rejected aircraft. Air India is reportedly planning to book slots for future deliveries. 

Earlier in March, the airline had benefitted from the similar move when Chinese airlines had rejected 41 Boeing 737 Max Jets due to issues, including safety concerns with lithium batteries in the planes’ cockpit voice recorders. 

This development comes after the Chinese government had asked its carriers to not accept Boeing aircraft. Besides this, the Beijing government has also asked Chinese carriers to freeze purchases of aircraft-related equipment and parts from American companies.

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Chinese airline giants like Air China, China Eastern Airlines and China Southern Airlines had planned to receive 45, 53 and 81 Boeing planes, respectively, between 2025 and 2027. 

“We anticipate some of these aircraft, originally destined for Chinese carriers, will be redirected to Indian customers,” TOI earlier reported, citing an airline industry specialist.

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Will It Help Air India’s Expansion Spree 

The Tata Group airline’s comeback in 2023 was met with an ambitious plan to make it a “worldclass” carrier. The salt-to-power conglomerate had placed one of the biggest orders in the history of civil aviation. The group signed an agreement to purchase 570 aircraft from the world’s two biggest aircraft manufacturers, Boeing and Airbus. While the conglomerate pumped in financial resources as a part of its revival strategy, the global supply chain disruption slowed down its efforts to increase fleet. 

The issue was flagged by the Tata Sons chairman, N. Chandrasekaran, at the NIT Trichy Global Alumni Meet. 

“...You all need to help me by pushing Boeing and Airbus to deliver me the planes,” said Chandrasekaran.

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While both the aircraft makers are suffering from supply chain disruption driven by the US and European markets post-Covid-19 pandemic, Boeing has been under the US federal aviation administration’s (FAA) radar due to safety concerns. According to a KPMG report, Demand & Disruption, with increased focus on quality and safety, Boeing’s production is likely to suffer in the short run. 

With limited Boeing aircraft production, the rejected ones can be redirected to Indian airlines, including Air India.