China’s Decision To Boycott Boeing Aircraft Could Turn Fruitful For Indian Airlines: Report

<p>Amid tightening global supply chains and a race to expand capacity, Indian airlines may find an unexpected advantage in the latest geopolitical standoff between the United States and China.</p>
<p>Following Beijing&rsquo;s directive to domestic carriers to steer clear of Boeing aircraft purchases&mdash;a move in retaliation to US President Donald Trump’s 145 per cent tariffs&mdash;Indian low-cost carriers like Air India Express and Akasa are poised to benefit, reported The Economic Times.</p>
<p>Both carriers have existing orders for the Boeing 737 MAX, the same aircraft model now stuck in limbo for Chinese airlines awaiting nearly 100 jets. Air India&rsquo;s wider fleet expansion also includes 11 Boeing 787 Dreamliners&mdash;aircraft that overlap with the orders placed by China&rsquo;s top three state-owned carriers.</p>
<h3>White Tails and Production Gaps Open New Avenues</h3>
<p>Industry watchers anticipate that India may soon see an influx of Boeing jets originally meant for Chinese buyers. Quoting airline industry specialists, TOI reported, “We anticipate some of these aircraft, originally destined for Chinese carriers, will be redirected to Indian customers. The previous year or two witnessed a similar occurrence, with white tails (aircraft manufactured for specific customers but acquired by others) being allocated to AI Express and Akasa.”</p>
<p>Last year, AI Express took delivery of 25 such white tail MAX aircraft and was on track to receive 25 more. With production lines in Seattle now facing a halt in output for Chinese orders, Indian carriers could step in to take over not just white tails but also custom-built aircraft, the report said.</p>
<p>”The Seattle final assembly line capacity designated for Chinese carriers’ MAX production will now remain unutilised. Consequently, Indian carriers including AI Express and Akasa might receive additional aircraft, either specifically manufactured or white tails,” the report noted citing sources familiar with the matter.</p>
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<h3>Trade Tensions Shake Up Global Supply Chains</h3>
<p>China&rsquo;s push to restrict purchases from US aerospace firms comes at a time when Boeing is already dealing with prolonged delivery delays, which have hit Akasa particularly hard. The airline has more pilots than it currently needs, with some cockpit crew left idle. Despite the setback, both Akasa and AI Express are financially equipped to take on more aircraft if the opportunity arises.</p>
<p>As part of its response, China is reportedly urging Airbus to increase the supply of A320 aircraft to its domestic carriers. However, with Airbus nearing production capacity, Boeing could redirect sidelined jets to nations like India, where demand remains robust.</p>
<p>Meanwhile, the broader implications of the US-China trade war are being felt across the aerospace sector. The latest escalation&mdash;Beijing&rsquo;s move to raise tariffs on U.S. goods to 125 per cent&mdash;has introduced fresh uncertainty into multibillion-dollar aircraft contracts. Bloomberg reported that Chinese authorities have also instructed airlines to avoid US-made parts and equipment.</p>
<p>Though analysts believe Boeing can weather a short-term drop in Chinese deliveries, China’s aviation sector could face more serious disruptions. &ldquo;If China stops buying aircraft components from the US, the C919 program is halted or dead,&rdquo; Bank of America analyst Ron Epstein warned.</p>
<p>With 45, 53, and 81 Boeing aircraft scheduled for delivery to Air China, China Eastern Airlines, and China Southern Airlines, respectively, between 2025 and 2027, uncertainty looms.</p>
<p>India, on the other hand, may find itself at the right place at the right time, turning geopolitical headwinds into a strategic tailwind for its aviation ambitions.</p>