Norwegian Air Cancels $10.6 Billion Deal for 97 Boeing 737 Max and Dreamliners, Claims Compensation

These 97 Boeing 737 Max and 787 Dreamliners are worth at least $10.6 billion based on list prices before customary discounts.

Norwegian cancelled orders for 97 Boeing aircraft. Photo: Norwegian

Norwegian Air has cancelled orders for 97 Boeing aircraft. The European budget carrier cancelled 92 of the Boeing 737 Max narrowbody jets and five 787 Dreamliners.

The airline will also claim compensation from the U.S. manufacturer for the 15-month long grounding of the 737 MAX and for 787 engine troubles that hit the Oslo-based carrier on several occasions, the airline said on Monday.

In addition to the order cancellation and claim for compensation, the airline has also filed a lawsuit against Boeing in order to reclaim pre-delivery payments for the jets that were on order.

The airline has also claimed pre-delivery compensation. Photo: Norwegian

In a statement released on Monday, the Oslo-based carrier said:

"Norwegian has in addition filed a legal claim seeking the return of pre-delivery payments related to the aircraft and compensation for the company’s losses related to the grounding of the 737 MAX and engine issues on the 787."

However, in the statement, Norwegian also said that talks with Boeing have "not led to an agreement with a reasonable compensation."

Norwegian is one the largest Boeing customers in Europe. Photo: Norwegian

Norwegian Air is one of the largest Boeing customers in Europe. Regarding this latest cancellation and claims, Boeing said:

"We are not going to comment on commercial discussions with our customers. Norwegian Air Shuttle is a longstanding Boeing customer. As with many operators dealing with a very challenging time, we are working on a path forward."

Norwegian did not specify the amount it would seek to claim from the U.S. plane maker, which it had been in talks with about compensation, and was not immediately available for comment.

Norwegian had 18 Max jets in March 2019. Photo: Norwegian

One of the reasons for the cancellation was the grounding of the 737 Max plane since March 2019 after being involved in two fatal crashes killing a total of 346 people on-board. Norwegian had 18 Max passenger jets in its fleet at the time.

Along with the order cancellations, the European low-cost carrier is also cancelling its GoldCare service contract, which was launched by the airline back in 2017, when it received its first 737 Max.

Under this agreement, Boeing was to provide exclusive coverage for both the Max and Dreamliner through 2034.

Norwegian also cancelled GoldCare contract. Photo: Norwegian

According to a Boeing GoldCare promotional document, Boeing stated:

"GoldCare is marketed as premier integrated service that brings together the essential support and solutions from the Boeing Edge portfolio to successfully manage the materials, materials, and maintenance of your fleet."

The news comes just as Boeing on Monday began a crucial three-day long certification flight of the troubled Boeing 737 Max jet as the aircraft maker hopes to overcome its greatest crisis.

Boeing started Max re-certification flights on Monday. Photo: Norwegian

After the completion of three-day long recertication flights, the Federal Aviation Administration would then need to approve new pilot training procedures and complete other steps.

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