India's flagship airline is in discussions to acquire ten Boeing wide-body aircraft that were originally manufactured for Chinese airlines but subsequently declined, according to sources familiar with the negotiations, potentially accelerating the carrier's ambitious fleet modernization plans.
Opportunity in Manufacturing Backlog
The discussions center around Boeing 787 Dreamliner aircraft that were produced for Chinese airlines but never delivered amid ongoing tensions between Beijing and Washington and regulatory hurdles in China. These aircraft have been sitting in Boeing’s inventory, creating an opportunity for the Indian carrier to potentially acquire them ahead of their originally scheduled deliveries.
According to three sources who spoke on condition of anonymity due to the confidential nature of the talks, the Indian airline sees this as a strategic opportunity to accelerate its fleet expansion without waiting in Boeing’s lengthy production queue.
“The airline is very interested in taking these aircraft because they can get them much faster than waiting for new production slots,” one source with direct knowledge of the discussions said. “The planes are already built and would require relatively minor customization.”
The acquisition would potentially allow the Indian carrier to receive these wide-body aircraft years earlier than ordering new ones, given Boeing’s current production backlog and supply chain challenges that have slowed manufacturing output.
Fleet Modernization Strategy
The potential acquisition aligns with the Indian airline’s ambitious fleet expansion program announced last year. In February 2023, the carrier placed a historic order for 470 jets from both Boeing and Airbus, including 70 wide-body aircraft. The deal, valued at approximately $70 billion at list prices, represented one of the largest aircraft purchases in commercial aviation history.
If finalized, the acquisition of these 10 previously allocated 787 Dreamliners would supplement the airline’s existing orders and potentially allow it to accelerate the retirement of older aircraft in its fleet.
The Indian carrier, which was privatized in 2022 after being acquired by a major Indian conglomerate, has been working to revitalize its operations and reclaim its position as a leading global airline after years of financial struggles under government ownership.
One industry analyst noted that securing these aircraft would represent a significant win for the airline: “Getting wide-body aircraft quickly is extremely difficult in the current market environment. Most manufacturers are sold out for years, so finding already-built planes is like discovering gold for an airline with ambitious growth plans.”
Customization and Delivery Timeline
According to the sources, if an agreement is reached, the aircraft would require some reconfiguration to meet the Indian airline’s specifications, including interior modifications and painting in the carrier’s livery. However, these changes would still allow for much faster delivery than waiting for newly manufactured aircraft.
“These planes would need some work to align with the airline’s configuration requirements, but the modifications would be relatively straightforward compared to waiting for new production,” a second source familiar with the discussions explained.
The exact timeline for potential deliveries remains unclear, but sources suggested that the first aircraft could be handed over within months after an agreement is finalized, rather than the years typically required for new orders in the current manufacturing environment.
The sources indicated that negotiations are progressing but cautioned that no final agreement has been signed. Both the airline and Boeing are reportedly working through commercial terms, delivery schedules, and the exact specifications for the aircraft.
Market and Strategic Context
The development occurs against the backdrop of strong growth in the Indian aviation market, which has emerged as one of the world’s fastest-expanding air travel sectors. Domestic air traffic in India has been consistently growing at double-digit rates, while international connectivity continues to expand rapidly.
For the Indian carrier, acquiring long-haul aircraft quickly would support its ambitions to expand international operations, particularly to destinations in Europe, North America, and Australia. The airline has stated plans to significantly increase its global market share over the next few years.
Meanwhile, for Boeing, finding new customers for aircraft originally destined for Chinese airlines would help alleviate inventory challenges that have impacted the manufacturer’s financial performance. The American planemaker has faced difficulties delivering new aircraft to Chinese carriers amid regulatory hurdles and political tensions between the United States and China.
Industry observers note that this type of transaction – where aircraft allocated to one customer are redirected to another – has become more common in recent years as manufacturers navigate geopolitical complexities and changing market demands.
“The aviation industry is increasingly having to adapt to geopolitical realities,” an aviation consultant commented. “What we’re seeing here is a practical business solution that could benefit both the manufacturer and an airline with aggressive growth plans.”
Neither the airline nor Boeing provided official comments when contacted regarding the potential aircraft acquisition, citing policies against discussing ongoing commercial negotiations.
If completed, the deal would further strengthen the growing aviation ties between India and the United States, which have expanded significantly in recent years through both aircraft purchases and broader aerospace cooperation.