No doubt Norwegian Air took a hit last year when times were good and Rolls-Royce and Boeing messed up on quality control. But with Covid-19, conditions in 2020 would be bad, no matter what. Norwegian can't blame Boeing or Rolls-Royce for what's happening now.
Norwegian Air has cancelled orders for 97 Boeing aircraft and will claim compensation from the U.S. plane maker for the grounding of the 737 MAX and for 787 engine troubles that hit its bottom line, the Oslo-based carrier said on Monday.
The airline cancelled 92 of the 737 MAX jets, five 787 Dreamliners and so-called GoldCare service agreements related to both aircraft.
“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,” it said.
Norwegian did not specify the amount it would seek to claim from Boeing, which it had been in talks with about compensation. Neither company was immediately available for comment.
The problematic Trent 1000 engines, used on the Dreamliners, were made by Rolls-Royce , which Norwegian has been in a dialogue with about compensation. Monday’s statement did not say whether Norwegian would file a legal claim against Rolls-Royce.
The European budget carrier, which revolutionised transatlantic travel by offering cheap fares, was struggling before the COVID-19 pandemic brought the airline industry to its knees. One reason was the grounding of the 737 MAX plane in March 2019 following the second of two fatal crashes that together killed 346 people. Norwegian had 18 MAX passenger jets in its 163-aircraft fleet at the time.
Originally a small regional airline in Scandinavia, Norwegian made its breakthrough on the global stage with a multi-year order in 2012 for up to 372 aircraft, of which 222 were from Boeing and 150 from Airbus .
News of the cancellation comes as Boeing on Monday began a crucial set of certification flight testing of the MAX as the aircraft maker hopes to overcome its greatest crisis.
Subscribe to Skift Pro
Subscribe to Skift Pro to get unlimited access to stories like these ($30/month)Subscribe Now
Photo Credit: Norwegian has canceled five Boeing 787 Dreamliner orders, along with 92 737 Max orders. The airline also has made a legal claim with Boeing. Skift