Budget Carrier Norwegian Air Cancels Orders for 97 Boeing Planes

Norwegian issued a notice to the Boeing Company of termination of its purchase agreements for five Boeing 787 aircraft and 92 Boeing 737 MAX aircraft, as well as GoldCare service agreements related to the 787 and MAX aircraft.

Source dpa, Hamburg, Germany (TNS)

June 30, 2020

2 min read

New York (dpa) - Budget carrier Norwegian Air has cancelled orders for a total of 97 Boeing aircraft.

Norwegian on Monday issued a notice to the Boeing Company of termination of its purchase agreements for five Boeing 787 aircraft and 92 Boeing 737 MAX aircraft, as well as GoldCare service agreements related to the 787 and MAX aircraft.

Norwegian also filed a legal claim seeking the return of pre-delivery payments related to the aircraft and compensation for the company's losses linked to the grounding of the 737 MAX and engine issues on the 787, the statement said.

The airline's 737 MAX aircraft have been grounded worldwide since March last year.

Norwegian said the grounding has disrupted its operations and caused significant losses.

The low-budget airline has engaged in a commercial dialogue with Boeing with a view to resolving its 787 and 737 MAX issues and obtaining compensation for its losses, the statement said.

There was no immediate comment from Boeing.

Like many other airlines, Norwegian is also struggling with a significant drop in demand amid the global coronavirus pandemic.

Around 7,650 employees have been placed on temporary leave.

The airline was suffering from financial problems before the crisis hit, having racked up large debts during a rapid expansion course since its founding in 1993.

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