Indian Carriers Eye Opportunity in China's Boeing Ban

NEW DELHI: Amid global supply chain constraints and aircraft acquisition hurdles, Indian airlines might find a silver lining in China's directive to its carriers to halt Boeing purchases. This move, a retaliation against US President Donald Trump's 145% tariffs, could redirect aircraft originally meant for Chinese airlines to Indian carriers.

White Tails: A Blessing in Disguise for Indian Airlines

Industry experts highlight a potential boon for Indian carriers like Air India Express and Akasa, with approximately 100 B737 MAX and 11 B787 Dreamliners initially destined for Chinese airlines now up for grabs. Last year's acquisition of 25 white tail MAX by AI Express and the anticipation of more such opportunities underscore this trend.

The Ripple Effect of US-China Tariff Dispute

The ongoing tariff spat between the US and China has left Boeing's production lines for Chinese carriers underutilized, opening doors for Indian airlines to acquire additional aircraft, either as white tails or purpose-built units. This scenario presents a unique chance for India's burgeoning aviation sector to expand its fleet amidst global uncertainties.

Airbus in the Mix: China's Potential Pivot

With Airbus operating two final assembly lines for the A320 family, China may now lean towards increasing its orders with the European manufacturer, further complicating the global aviation supply chain dynamics.

Challenges and Opportunities Ahead

While Boeing's delivery delays have strained resources for newcomers like Akasa, the financial readiness of Tata group's AI Express and Akasa to absorb additional aircraft signals a robust growth trajectory for India's budget airlines, despite the industry's current turbulence.