Air India Eyes Acquisition of Undelivered Boeing 737 Max Aircraft

Air India is reportedly in talks with Boeing to acquire several undelivered Boeing 737 Max aircraft initially intended for Chinese airlines but held up due to the ongoing trade tensions between the United States and China. The Tata Group-owned airline, which operates the low-cost subsidiary Air India Express, is looking to expand its fleet rapidly to better compete with market leader IndiGo and other regional carriers.

The aircraft in question were in the final stages of production but have been delayed due to tariffs imposed by both the U.S. and China, disrupting their delivery process. On April 22, 2025, two Boeing 737s destined for Chinese carriers were turned back to their point of origin in the U.S., though the exact reason for the reversal was not disclosed.

According to Bloomberg, Air India plans to approach Boeing regarding the availability of these aircraft, which were intended for Chinese carriers but are now unlikely to be delivered due to the strained political relations between the two countries. The airline sees this as an opportunity to accelerate its expansion plans, particularly through its Air India Express brand. Air India is keen to secure available 737 Max aircraft, as well as future delivery slots that may become available if the trade rift between the U.S. and China continues to affect deliveries.

This potential acquisition is not a new strategy for Air India. The airline previously benefited from delays and cancellations involving Chinese carriers when it took delivery of 41 Boeing 737 MAX aircraft originally ordered by Chinese airlines but not delivered following the global grounding of the aircraft type in 2019. Air India’s ability to take on these aircraft has helped boost its fleet and support its rapid growth ambitions.

While neither Air India nor Boeing has commented directly on the negotiations, the move signals Air India’s eagerness to expand its fleet amid rising demand for its services. Air India’s efforts to secure more Boeing 737 MAX aircraft follow similar discussions by Malaysia Airlines, which is also exploring opportunities to acquire 737 Max planes that could become available in the short to medium term.

The delivery delays stem from China’s government advising its airlines not to accept Boeing aircraft due to tariffs imposed on U.S.-made goods. At the time of the restrictions, about ten aircraft were in the process of being delivered to Chinese airlines. The tariffs have caused significant disruption to Boeing’s order book, but the situation also opens up opportunities for other airlines, like Air India, to secure aircraft that would otherwise be unavailable.

However, acquiring these undelivered planes is not a simple process. The aircraft may have already been customized with engines, cabin interiors, and even the original airline’s livery. Any airline stepping in to take over these aircraft would need to arrange new financing, insurance, and potentially additional crew training to integrate the aircraft into their fleets.

Air India is already set to receive nine 737 MAX aircraft that have been in storage following the 2019 grounding, with plans to take delivery by June 2025. This acquisition, combined with the potential for taking on the undelivered aircraft originally intended for Chinese airlines, will bring Air India’s fleet of 737 MAX aircraft to over 50 planes, bolstering its capacity for both domestic and international operations.

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