Boeing's 737 MAX Jet Deliveries Halted by China Amidst US-China Tariff War; Air India Explores Purchase, Initial Talks Underway.
Air India-Boeing: The ongoing US-China tariff war appears to be indirectly benefiting India. Boeing, the American aircraft manufacturer, announced on Wednesday that Chinese clients have refused delivery of several 737 MAX jets. Consequently, Boeing is now actively seeking alternative buyers, with India's national carrier, Air India, emerging as a prominent contender.
Negotiations for Purchase of 10 Boeing 737 MAX Aircraft
According to Reuters, Air India is in negotiations to purchase approximately 10 Boeing 737 MAX aircraft. These planes would bolster the fleet of Air India Express, which currently operates with nearly 100 aircraft.
Why is this Deal Significant?
Air India requires additional aircraft to expand its network. These Boeing jets were originally intended for a Chinese airline but are now available for immediate delivery due to the cancelled order—a highly advantageous situation for any airline.
A source stated, "Air India has shown significant interest. If negotiations are successful, these aircraft could be integrated into the fleet by the end of the year."
Modifications to Customized Aircraft
As the aircraft's cabin fittings and seating arrangements were originally customized for the Chinese airline, they will require modification to meet Air India's operational standards. The final price and delivery timeline will be determined after these modifications are completed.
Tariff War Alters Circumstances
It is noteworthy that the substantial tariffs imposed by the US and China on each other's products have significantly strained bilateral trade relations. This has impacted numerous global deals, but it could present opportunities for countries like India.
