As Beijing halts deliveries of Boeing’s US-made aircraft in response to new tariffs, Asian airlines are sensing an opportunity to expand their fleets, looking to snap up the planes being rejected by China.
According to Bloomberg, Air India Ltd. is seeking to secure Boeing Co. aircraft initially designated for Chinese carriers, according to people familiar with the matter.
Sources familiar with internal deliberations at Air India indicated that the airline intends to engage with Boeing to obtain a number of 737 Max jets originally earmarked for Chinese operators.
Air India is also eager to take up slots for future deliveries should they become available, the people said.
The carrier has benefited from China’s pullback in the past — through March, it had accepted 41 737 Max jets originally built for Chinese airlines.
Their deliveries had been deferred due to issues including safety concerns with lithium batteries in the planes’ cockpit voice recorders.
Further, Malaysia Aviation Group Bhd., the parent company of Malaysia Airlines, is also in discussions with Boeing regarding early delivery slots vacated by Chinese customers.
Having placed a firm order for 30 Boeing 737 Max jets in March—with an option for an additional 30—MAG is reportedly pursuing an accelerated delivery timeline, potentially shortening its original 2029–2030 window.
According to MAG managing director Izham Ismail, the group is considering a capital raise to finance these acquisitions, should it succeed in assuming the vacated slots.
The initiative is particularly significant for Malaysia Airlines as it aims to retire older aircraft variants and expand its regional footprint, with government support framing the move as part of a larger economic strategy.
Trade war undercuts Boeing’s Chinese market access
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The ongoing geopolitical tensions are reshaping the commercial aerospace landscape.
Beijing’s imposition of tariffs as high as 125% on US-manufactured goods—prompted by a 145% reciprocal tariff announced by US President Donald Trump—has directly impacted Boeing’s prospects in the Chinese market.
Bloomberg recently reported that approximately 10 aircraft had been queued for delivery to Chinese customers before the embargo was effectively enforced.
Two jets previously destined for Chinese carriers have since been flown back to the United States.
What do experts say?
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According to experts, Boeing is unlikely to make any hasty moves.
The trade conflict with China could cool as quickly as it flared up, and the Chinese market remains too important to sideline.
Boeing estimates China will need nearly 9,000 aircraft over the next two decades—translating to more than 200 jets annually—and would prefer to retain a meaningful share of that demand alongside Airbus.
At present, that long-term potential isn’t reflected in Boeing’s order book.
According to Vertical Research Partners analyst Rob Stallard, Boeing has about 160 jets in its backlog destined for Chinese customers, including orders from Hong Kong—roughly 3% of its total.
Airbus, by comparison, has around 6% of its backlog tied to China, though both manufacturers list a significant portion of orders under “undisclosed” customers, some of which are believed to be for Chinese airlines.
While reselling jets originally intended for China offers Boeing a temporary way to manage its inventory, the company’s longer-term objective remains unchanged: to build and sell more planes, especially to China.
Boeing is expected to address the evolving trade landscape when it reports its first-quarter earnings on April 23.
