Asian Airlines are looking for the aircraft that China has rejected.
Bloomberg reports that Air India Ltd. wants to purchase Boeing Co. planes originally designated for Chinese carriers.
Air India sources familiar with its internal discussions have indicated the carrier intends to work with Boeing in order to acquire a number 737 Max aircraft originally intended for Chinese operators.
Air India also wants to fill slots in future deliveries if they are available.
In the past, China Airlines has been able to benefit from its pullback.
The delivery of the aircraft had to be delayed due to safety issues with the lithium batteries used in cockpit voice recording devices.
Malaysia Aviation Group Bhd. (the parent company of Malaysia Airlines) is in talks with Boeing about the early delivery slots that Chinese customers have vacated.
MAG has reportedly accelerated its delivery schedule after placing a firm 30-jet order in March, with an option to purchase an additional 30. This could potentially reduce the original timeline of 2029-2030.
MAG’s managing director Izham Ismail said that the group would consider a capital raising to fund these acquisitions if it were to succeed in assuming vacant slots.
Malaysia Airlines is a major beneficiary of the initiative, as they aim to retire their older aircraft and increase its regional presence. The government has also backed this move by framing it as part a wider economic strategy.
Boeing Chinese market access is threatened by a trade war
Geopolitical tensions continue to reshape the commercial aviation landscape.
Boeing has suffered a direct impact on the Chinese market due to Beijing’s impositions of up to 125% tariffs on US manufactured goods. This was prompted by President Donald Trump’s announcement that he would impose a reciprocal 145% tariff.
Bloomberg reported recently that 10 aircraft were waiting to be delivered to Chinese clients before the embargo became effective.
Since then, two jets that were originally destined for Chinese carriers are now back in the United States.
Experts’ opinions: What are they?
Boeing will not make any rash decisions, according to the experts.
China’s market is too important to ignore, even if the trade war with China flares up.
Boeing believes China will require nearly 9,000 planes over the next 20 years, which translates to 200+ jets per year. Boeing would like to share a significant portion of this demand with Airbus.
Boeing’s current order book does not reflect this long-term potential.
Vertical Research Partners analyst Rob Stallard says that Boeing’s backlog includes about 160 aircraft destined for Chinese clients, as well as orders coming from Hong Kong. This is roughly 3% of the total.
Airbus has 6% of backlog in China. Both manufacturers have a large number of “undisclosed customers” that are believed to include Chinese airlines.
Boeing’s long-term goal remains the same, despite the fact that reselling planes intended for China is a way of temporarily managing its inventory. The company wants to continue building and selling more aircraft, particularly to China.
Boeing’s first-quarter earnings report on April 23, is likely to include a discussion of the changing trade landscape.
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