Air India may buy Boeing 737 MAX jets rejected by Chinese buyers amid US-China trade tensions

The potential deal follows a move by Chinese customers to decline deliveries due to the ongoing trade dispute between China and the United States.

Boeing CEO Kelly Ortberg said on Wednesday that "due to the tariffs, many of our customers in China have indicated that they will not take delivery," adding that the company might redirect those jets to other airlines that are in need.

The two economic superpowers have each imposed tariffs exceeding 100 per cent on one another.

According to the two unnamed sources, Air India is seeking approximately 10 narrowbody jets for its low-cost subsidiary, Air India Express, which currently operates a fleet of over 100 aircraft, said the Reuters report.

"Air India is very interested ... if the deal goes through, the planes are expected to be added to the fleet by end of the year," one of the sources told Reuters, noting that the discussions are still in the early stages.

Air India Express has previously acquired white tail aircraft—jets initially built for one buyer but eventually taken by another.

A third person familiar with the discussions noted that any differences in jet configuration between those built for Chinese carriers and Air India's existing fleet could influence pricing negotiations.

The development could aid Air India’s expansion plans, which have been hampered by delays in receiving new aircraft.

Last month, Air India CEO Campbell Wilson said the airline was a “victim of circumstance,” pointing to delays from both Boeing and Airbus.