Air India Ltd. has been benefiting from an unusual twist in the global aircraft supply chain, acquiring dozens of Boeing 737 Max jets that were initially intended for Chinese airlines. Since September 2023, the Indian carrier has been receiving these planes at a steady pace—about two aircraft per month—allowing it to rapidly expand its narrowbody fleet at a time when new aircraft deliveries are scarce across the globe.
This windfall came as Boeing began clearing a backlog of jets that had been built for Chinese customers but could not be delivered due to prolonged regulatory hurdles and geopolitical tensions between the United States and China. The impasse created an unexpected opening for Air India, which swooped in to take over these white-tail aircraft—planes that had already been manufactured but not yet assigned to a specific customer.
However, this fortunate run appears to be nearing its end. According to people familiar with the matter, the pool of available 737 Max aircraft originally designated for Chinese carriers is expected to dry up by June. That development casts uncertainty over Air India’s short-term fleet expansion plans, as future deliveries now hinge on Boeing’s ability to produce new jets to meet fresh orders, amid its own production constraints and quality control issues.
Air India’s access to these ready-made aircraft played a key role in its transformation under the Tata Group, which is seeking to modernize and scale the airline quickly. The delivery slowdown could potentially hinder the pace of network growth and route expansion that the airline has aggressively pursued over the past year.
With global demand for new aircraft outpacing supply, and major manufacturers like Boeing and Airbus grappling with production bottlenecks, airlines worldwide—including Air India—are left navigating an uncertain and highly competitive aircraft acquisition landscape.
