Norwegian Air has canceled orders for 97 Boeing aircraft in addition to claiming compensation from the planemaker for the grounding of the 737 Max and 787 engine troubles.
The airline canceled 92 of the 737 MAX jets, five 787 Dreamliners, and GoldCare service agreements related to both aircraft.
According to market pricing data from aircraft valuation company Avitas, the Norwegian Air orders were worth about $5.5 billion after standard discounts.
According to Norwegian Air, they have also filed a legal claim aimed at returning of pre-delivery payments related to the aircraft and compensation for the airline’s losses associated with the grounding of the 737 MAX and engine issues on the 787. The problematic Trent 1000 engines, used on the Dreamliners, were made by Rolls-Royce.
However, Norwegian did not specify the amount it would seek from Boeing, which it had been in talks with about compensation.
Norwegian converted debt to equity and sold new shares last month in order to get access to government loan guarantees in its home market, saving it from collapse after the COVID-19 crisis gutted demand for air travel.
Buyers typically have the right to walk away from deliveries that have been delayed more than a year without risk of penalties. Boeing has recorded cancellations for 313 Max planes so far this year.
Kuwaiti lessor, Alafco Aviation Lease and Finance Co., sued Boeing earlier this year, seeking to scrap an order for 40 Max and reclaim the $336 million it said it had paid in advance for the aircraft.
Boeing began the 737 Max certification flight tests on Monday, 29th June 2020, seeking to get approvals from the Federal Aviation Administration (FAA) to return to service.