India Could Come to Boeing’s Rescue as Chinese Carriers Stop Deliveries

According to reports, India’s Air India is in talks with Boeing to take deliveries of 10 planes after Chinese carriers refused to take deliveries. India is among the fastest-growing airline markets and might come to Boeing’s rescue as the company gets trapped in the US-China trade war.

Air India was Indian’s state-owned carrier before the country’s Tata conglomerate bought it in 2022. The group owned the carrier before it was nationalized, and it was a homecoming of sorts for the company.

Meanwhile, citing sources, Reuters reported that Air India is in talks to buy 10 narrowbody planes for its budget carrier Air India Express. Air India has been looking to add new carriers to its depleting and aging fleet and these purchases, if they go through, would add to Air India Express’s current fleet strength of 100.

Many Chinese Carriers Halt Deliveries of Boeing’s Aircraft

During their Q1  2025 earnings call earlier this week, Boeing confirmed that several of its customers in China “have indicated they will not take delivery.” The company said that it is “in close communication with our China customers and we’re actively assessing options for remarketing already built or in-process airplanes.”

It added “as for the nine airplanes not yet in the production system, we’re engaged with our customers to understand their intentions for taking delivery, and if necessary, we have the ability to assign those positions to other customers.” Boeing however tried to allay fears by stressing it is doing its “best to keep the China situation from impacting our production flow.”

Boeing has always been a flashpoint between the US and China. China was the first country to ground Boeing’s 737 MAX jets after two fatal crashes in 2018 and 2019 and was among the last to allow the model into service.

Trump Says BA Should “Default” China

Boeing is among the last few symbols of American manufacturing, and President Donald Trump has also weighed in on China refusing deliveries of Boeing’s aircraft.

In a social media post, he said, “Boeing should default China for not taking the beautifully finished planes that China committed to purchase. This is just a small example of what China has done to the USA, for years.”

He added, “And, by the way, Fentanyl continues to pour into our Country from China, through Mexico and Canada, killing hundreds of thousands of our people, and it better stop, NOW!”

Notably, Trump slapped a 20% tariff on China for the country’s alleged role in pushing fentanyl into the US. Later the US slapped another 125% reciprocal tariffs on China even as Trump exempted tech goods like smartphones and computers from the tariffs subsequently.

Boeing’s 737 Max Looks on Track Now

China halting Boeing deliveries could not come at a worse time for the Virginia-based company as it had just started to recover from the 737-crisis emanating from whistleblower allegations of the company cutting corners on the popular models to boost profits.

Boeing eventually reached a $2.5 billion deferred prosecution agreement with the Department of Justice (DOJ) to avoid prosecution on a single charge of fraud. The company is now seeking the FAA’s approval to increase 737 Max production.

Meanwhile, Boeing is confident it can offset the negative impact from China by increasing deliveries to other countries.

“While we are closely watching the developments in global trade, our strong start to the year, combined with the demand for airplanes and our half trillion-dollar backlog for our products and services gives us the flexibility we need to navigate this environment,” said Boeing CEO Kelly Ortberg in a staff note.

Notably, Ortberg, who has been in the aerospace industry for over 3 decades and was leading Rockwell Collins between 2013 to 2021, took over the baton as Boeing’s CEO. He replaced Dave Calhoun, under whose leadership Boeing stock has sagged and underperformed markets by a wide margin.

Boeing’s Balance Sheet Has Deteriorated Amid the 737 Crisis

Boeing hasn’t posted an annual operating profit since 2018, which coincides with its safety woes. The company has been burning cash and expects to post negative cash flows in 2025, as well. The company had a debt of $53.6 billion at the end of Q1. Amid the recurring negative free cash flows, Boeing’s balance sheet has deteriorated, and the company used debt to tide it over the cash crunch.

Amid Boeing’s safety woes, rival Airbus has outpaced it in orders and deliveries for six consecutive years.

China Is Targeting Aircraft Manufacturing

Notably, Chinese state-owned plane maker COMAC is also trying to expand internationally. While COMAC is arguably an untested player for global airlines and not many foreign airlines might order from them, Boeing does not have any laurels to its name either when it comes to credibility, or at least that’s what the general perception has been about the brand over the last couple of years.