Indian airlines may gain as China halts Boeing orders over US tariffs

China's directive to its airlines to avoid purchasing Boeing aircraft—issued in response to US President Donald Trump's 145% tariffs—may benefit Indian carriers struggling with aircraft acquisition due to global supply chain constraints.

Around 100 Boeing 737 MAX aircraft, which Air India Express and Akasa are awaiting, and 11 Boeing 787 Dreamliners listed in Air India’s order book are currently pending delivery to Chinese airlines.

“We anticipate that some of these aircraft, originally intended for Chinese carriers, will be redirected to Indian customers. A similar situation occurred in the past year or two, when ‘white tails’—aircraft manufactured for specific customers but acquired by others—were allocated to Air India Express and Akasa,” said airline industry experts.

Last year, Air India Express acquired 25 white-tail MAX jets, with another 25 on the way.

The airline may be able to secure additional whitetails or custom-built aircraft amid the latest US-China tariff dispute.

"The Seattle final assembly line capacity designated for MAX production for Chinese carriers will now remain unutilized. As a result, Indian carriers, including Air India Express and Akasa, might receive additional aircraft—either white tails or those specifically manufactured for them," industry sources said.

Meanwhile, Airbus continues to operate two final assembly lines for its popular A320 single-aisle family.

China could now turn to Airbus to increase aircraft supply to its carriers.

Due to Boeing’s delayed deliveries, Akasa—India’s newest airline—is currently employing more pilots than it needs, leading to discontent among idle cockpit crews.

However, both Akasa and Tata Group-owned Air India Express have the financial strength to absorb additional aircraft, should they become available.

As requested by the original customers, these low-cost carriers added white-tail aircraft configured with multiple rows of forward-facing 2x2 business-class seats.

They accepted Boeing’s available inventory, which has been significantly affected by a series of production challenges.