Air India Ltd.’s steady supply of 737 Max jets, which came amid a broader shortage of new aircraft, is nearing its end. Since September 2023, the airline has received an average of two Boeing jets per month as the U.S. manufacturer removed a backlog originally meant for Chinese carriers. However, sources say this supply will dry up by June, leaving Air India uncertain about future deliveries.

The airline’s access to these planes was due to an unusual supply chain situation. Boeing was able to redirect 737 Max jets initially built for Chinese carriers, such as Shanghai Airlines Co., after they postponed deliveries due to regulatory concerns over the safety of a lithium battery in the plane’s cockpit voice recorders.

Air India Express Ltd., the low-cost subsidiary of Air India, ordered 190 aircraft in June 2023. So far, it has received 41 out of 50 "white-tail" planes, aircraft built initially for other airlines but left in storage. Four more are expected this month, with the remaining five set to arrive between May and June.

However, with deliveries of the remaining 140 Boeing 737 Max jets not expected until the fiscal year ending March 2026, Tata Group-owned Air India risks falling behind market leader IndiGo, which has announced plans to add more than one aircraft per week this year.

Of the 41 white-tail planes Air India has obtained, 38 are currently in operation, while three are undergoing repainting, according to sources familiar with the matter.

Boeing is expected to shut down a shadow factory to upgrade white-tail 737 Max jets this summer. This follows the recent closure of another facility where the company inspected and repaired its larger 787 Dreamliner. Meanwhile, Boeing is focusing on increasing production of the 737, aiming to manufacture 38 jets per month by mid-2025.

In an email response, Boeing stated, “We will defer to our customers for any details on their fleet planning.” Meanwhile, Air India and Air India Express have yet to answer requests for comment.

The Air India Group, which holds less than a third of India’s domestic aviation market, has placed orders for 570 aircraft over the past two years, split between Boeing and Airbus SE. However, despite this massive order, sources indicate that new deliveries of single-aisle Boeing planes may not arrive until closer to the end of the current fiscal year.

In addition to receiving surplus Boeing aircraft, Air India has acquired six Airbus A350-900 jets, initially intended for Russian flag carrier Aeroflot. Additionally, the airline has leased 11 Boeing 777s from the market, sources said. Meanwhile, Akasa Air, a smaller competitor of Air India and another Boeing 737 Max customer expanded its fleet to 27 aircraft in 30 months, mainly due to these surplus jets. However, the airline faces challenges as deliveries for 199 of the 226 aircraft it ordered remain delayed.