Norwegian’s canceled orders represent all of its Boeing unfilled orders: 92 737 Max aircraft and five 787 Dreamliners.
There was a time when Norwegian, one of the world’s largest discount companies, was one of Boeing’s top customers. It was the first European airline to buy the 737 Max when it agreed in 2012 to buy 100 of the planned aircraft and an additional 22 from previous versions of the 737. At that time, Boeing set the purchase price of 122 aircraft at $ 11.5 billion. although with an order of that size there is no way Norwegian will pay the full list price.
Boeing released a statement suggesting it is still in talks with Norwegian about its order.
“We are not going to comment on business conversations with our customers,” the company said. “Norwegian Air is a long-standing Boeing customer. As with many operators facing a very difficult time, we are working on the way forward.”
The terms have not been disclosed, but industry experts believe that most of the compensation Boeing has agreed to pay to airlines comes in the form of discounts on future purchases of aircraft, parts and services. But with these canceled orders, Norwegian has no future Boeing purchases planned.
Norwegian said that, in addition to the problems caused by grounding the 737 Max, it has had problems with the engines of the 787 Dreamliners it already owns and operates, saying “it affected reliability and resulted in premature maintenance and unplanned”. He also said he was terminating a lucrative service contract with Boeing.
Norwegian said that in addition to compensation, it is also seeking a refund of the deposits it paid Boeing for the 97 planes.
Norwegian has 37 of the Dreamliners in its fleet and 101 from an earlier version of the 737. But it was forced to land all but eight of its planes from April to June due to a lack of air travel, especially on transatlantic routes. Even with the restart of some international flights, it will only bring 12 additional aircraft into service starting Wednesday.