Air India is rapidly expanding its international network as the airline looks to capitalize on India’s booming aviation market.

Competing in a Global Market

To meet rising demand, the Tata Group-owned carrier is aggressively acquiring more aircraft, ensuring it can compete with global giants like Emirates and Lufthansa. In a strategic move, Air India has secured 50 Boeing 737 Max jets originally built for Chinese airlines, allowing it to speed up deliveries at a time when new aircraft are in short supply.

Since September 2023, Air India has been receiving an average of two Boeing jets per month, benefiting from the U.S. manufacturer’s decision to redirect 737 Max planes initially meant for Chinese carriers, such as Shanghai Airlines. These planes had been in storage after China postponed deliveries due to regulatory concerns over the lithium battery in the cockpit voice recorders.

Air India Express, the airline’s low-cost subsidiary, has already taken possession of 41 of these 50 so-called white-tail planes. Another four are expected this month, with the final five set to arrive between May and June.

However, this steady supply is set to dry up, leaving Air India uncertain about future deliveries. With the remaining 140 jets from its 2023 order of 190 aircraft not expected to arrive before March 2026, Air India risks losing ground to market leader IndiGo, which is adding more than one aircraft a week.

Boeing, meanwhile, is preparing to wind down a shadow factory used to upgrade the white-tail 737 Max jets this summer, following the shutdown of another facility used for inspecting and repairing the larger 787 Dreamliner. The manufacturer is now focusing on ramping up 737 Max production, aiming to reach 38 jets per month by mid-2025.

Expanding Fleet with Widebody Jets

In addition to its narrow-body expansion, Air India is also looking to bolster its widebody fleet. According to sources from Reuters, the airline is in advanced talks to acquire between 30 and 40 widebody jets, with the order likely split between the air india a350and the Boeing 777X. Some reports suggest that the final deal could exceed 50 aircraft, although specifics remain undisclosed.

This move aligns with Air India’s strategy to strengthen its position in the global market, as India’s international travel sector is expected to grow by 15-20% this financial year. Domestic air travel, by contrast, is projected to grow at a more modest rate of 7-10%, according to ICRA, a leading ratings agency.