Air India in talks with Boeing to acquire 10 planes rejected by China

Air India is in talks with US planemaker Boeing to acquire around 10 737 MAX jets after Chinese customers started rejecting deliveries amid a trade war with the United States, two people familiar with the discussions told Reuters.

Boeing CEO Kelly Ortberg said on Wednesday that "due to the tariffs, many of our customers in China have indicated that they will not take delivery", and the company could redirect jets to other customers in need.

The United States and China, the globe's two largest economies, have each imposed duties exceeding 100 per cent on the other. 

Two sources, who declined to be named as the discussions are private, said Air India was seeking around 10 narrowbody planes from Boeing for its budget carrier Air India Express, which has a fleet of more than 100 aircraft.

 

Air India, Air India Express and Boeing did not immediately respond to requests for comment.

"Air India is very interested ... if the deal goes through, the planes are expected to be added to the fleet by end of the year," the first person said, adding the talks were in early stages.

Air India Express has previously taken white tail aircraft - or jets manufactured for one customer but acquired by another.

A third source familiar with talks between Air India and Boeing said any difference in jet configuration between its fleet and the incoming planes meant for Chinese customers may be factored into price negotiations.

The move could be a boost to Air India's expansion plans as the group's growth has been constrained by a lack of new aircraft.

Last month, Air India CEO Campbell Wilson said the airline was a "victim of circumstance," referring to delivery delays plaguing Boeing and Airbus.