NEW DELHI: Indian airlines could gain an unanticipated benefit after China stopped new purchases of Boeing aircraft due to US tariffs. The Chinese government’s sanctions, triggered by President Donald Trump’s 145% tariffs, could free up delivery slots for Indian carriers such as Air India Express and Akasa Air, which are at the moment facing supply chain issues and delay with aircraft deliveries due to complex global supply chain challenges.
Chinese Airlines have round the clock 100 Boeing 737 MAX and 11 Boeing 787 Dreamliners pending deliveries which are also in high demand by Indian carriers. Industry experts believe these aircraft might get re-allocated which could benefit Indian Airlines. A similar situation happened before where Air India Express procured 25 ‘white tail’ 737 MAX waiting aid jets (aircraft built but not delivered to their original buyers) and expecting 25 more.
Indian carriers stand to receive the planes sooner as Boeing’s Seattle assembly line is not producing for China, Indian carriers will have quicker access to either white tails or newly built planes. For the A320 family of aircraft; Airbus will be able to increase orders from China, with two Final Assembly Lines.
Boeing increasing the delivery schedule will greatly benefit Akasa facing operational challenges from a shortage of aircraft and pilots. Akasa and AI express currently have the sufficient funding to obtain, if the aircraft become available.
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