The trade war between the United States and China is causing surprising changes in the aviation industry. As China now forbids its airlines from purchasing more Boeings, other Asian airlines are seizing the opportunity to acquire new aircraft more quickly.
The Chinese government has instructed its airlines to temporarily halt all purchases of Boeing aircraft and parts from the U.S. This measure follows the U.S. decision to impose a 145% tariff on Chinese goods.
For Boeing, this is a new setback. The company had considered China one of its key growth markets. The largest Chinese airlines, Air China, China Eastern, and China Southern, had plans to purchase a total of 179 Boeings between 2025 and 2027. These orders now appear to be on hold or may even be completely canceled.
It is clear that Boeing is taking action: aircraft originally destined for Chinese airlines are being returned to the United States. On April 20, a 737 MAX, originally intended for Xiamen Airlines, landed at Boeing Field in Seattle after a flight from Zhoushan. A second aircraft followed the next day via Guam.
The resulting space on Boeing’s delivery schedule is not going unused. Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, is seriously considering whether it can take over the freed-up delivery slots. “MAG is in talks with Boeing to see if we can utilize those slots,” said CEO Datuk Captain Izham Ismail. However, he emphasized that such a takeover is complex, involving many considerations around financing, specifications, and logistics.
Indian airline Air India has also shown interest. Sources within aviation report that the airline, owned by the Tata Group, is in talks with Boeing to take over aircraft originally intended for Chinese airlines. Air India, which is in the midst of an ambitious restructuring, has previously received 41 737 MAX aircraft that were initially built for China. The airline now hopes to benefit once again from China’s withdrawal.
The impact of the Sino-American friction extends beyond just aircraft deliveries. Due to China’s boycott of U.S. parts, disruptions in the global aviation supply chain are now a threat. Manufacturers, leasing companies, and airlines worldwide are revising their contracts and strategies.
However, analysts do not expect any immediate disaster for Boeing. The company could relatively easily reallocate the aircraft to other airlines. Moreover, its competitor Airbus, which already holds a dominant position in China, does not have the capacity to solely absorb the sudden Chinese demand for new aircraft.