Boeing 737 Max. (image-X/BoeingAirplanes)

Amid escalating US-China trade tensions, Air India Ltd is reportedly in talks to acquire Boeing 737 Max aircraft originally built for Chinese carriers, who have rejected deliveries. The Tata Group-owned airline seeks to bolster its fleet as part of a larger revival plan, and according to insiders, it’s also keen to secure future delivery slots vacated by Chinese airlines.

According to people familiar with internal discussions, the airline has already accepted 41 aircraft through March and may receive nine more by June, taking the total to 50 jets. The move could help offset delays in Air India’s larger 2023 aircraft order, which isn’t expected to begin deliveries until after March 2026.

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The jets were originally sidelined due to Chinese government orders blocking Boeing deliveries, following retaliatory tariffs of up to 125% on US made goods, reported Bloomberg last week. Around 10 planes were being prepared for delivery at the time, and some 737 Max jets in China have already been sent back to the US.

While Boeing faces delivery complications, such as custom cabin configurations and partial payments, the interest from non-Chinese carriers like Air India and Malaysia Aviation Group Bhd, also in talks with Boeing for the same, may cushion the economic impact on the American manufacturer.

The developments come as Air India Express, the airline’s low-cost unit, pushes for rapid expansion to compete with India’s market leader, IndiGo. However, some jets from the new batch are facing retrofit delays due to supply chain issues. The airline plans to replace business class sections with all-economy seating by April 2026.

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Additionally, Air India’s growth prospects are expected to slow temporarily due to an ongoing fleet retrofit program and the planned phase-out of certain Airbus models.

CEO Campbell Wilson recently acknowledged these challenges, stating that the airline is focusing on competitive pricing to attract customers as it upgrades its ageing fleet.