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

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

Norwegian Air is one of the largest Boeing customers in Europe.

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

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.

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.

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

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

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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