Amid the ongoing trade tensions between the US and China, the Air India group is reportedly in talks with US plane maker Boeing to acquire 10 new 737 MAX jets after Chinese customers rejected the delivery, reports said.
Boeing CEO Kelly Ortberg has said 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 who have placed their orders with the company.
Both the United States and China have imposed reciprocal tariffs on each other that exceed more than 100 per cent.
Sources close to the matter told reporters that discussions are going on and that Air India was seeking around 10 narrow-body planes from Boeing for its budget carrier, Air India Express, which maintains a fleet of more than 100 aircraft.
However, Air India, Air India Express, and Boeing have maintained silence on the matter.
"Air India is very interested ... if the deal goes through, the planes are expected to be added to the fleet by the end of the year," the source from Boeing told reporters
Air India Express has previously taken white tail aircraft - or jets manufactured for one customer but acquired by another.
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 and the latest state-of-the-art aircraft manufactured by Boeing.
Last month, Air India CEO Campbell Wilson said the airline was a "victim of circumstance," referring to delivery delays plaguing Boeing and Airbus.
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