Indian carriers like Air India Express and Akasa Air may emerge as indirect beneficiaries of the current trade war between the US and China.
Earlier this week, China directed its airlines to avoid purchasing Boeing aircraft in retaliation to US President Donald Trump’s move to impose 245% tariffs on certain imports from China.
Boeing’s primary manufacturing and assembly hubs—the Everett and Renton Production Facilities near Seattle, Washington—are known for their high-volume output of both commercial and defence aircraft.
Reports suggest that Chinese airlines currently await delivery of nearly 100 Boeing 737 MAX jets—the same aircraft model ordered by both Air India Express and Akasa Air. In fact, till 2027, China’s three biggest carriers—Air China, China Eastern, and China Southern—were scheduled to receive 45, 53, and 81 Boeing aircraft, respectively, per the reports.
With Beijing’s diktat to its airlines disrupting the order pipeline, the Indian aviation sector may be well positioned to capitalise on this opportunity. Air India’s massive order book includes 20 Boeing 787 Dreamliners, and 10 Boeing 777X widebody aircraft. In the narrowbody segment, the airline has placed orders 190 Boeing 737 MAX jets—potentially positioning it well amid Boeing’s shifting global supply priorities.
“Aircraft purchase and acquisition are pretty complex subjects but a good deal from a manufacturer keeps our cost in check, especially when there is lack of aircrafts in the market,” a senior airline executive told Business Today TV.
Delayed Boeing deliveries have already impacted India’s newest airline, Akasa, which currently employs far more pilots than its current fleet demands.
However, as per industry analysts, both Akasa and Tata group-owned Air India Express have the financial headroom to absorb additional aircraft, should they become available.
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