Clear. 81.7   F New York
AI-Powered News Summarizer
Top Stories

Boeing's biggest hit to orders yet: Norwegian cancels 97 jets

June 30, 2020. Summarized by summa-bot.

An employee carries out checks on a Boeing Co. 787 Dreamliner passenger aircraft, operated by Norwegian Air Shuttle ASA, at London Gatwick Airport in Crawley, U.K., on Tuesday, Jan. 10, 2017. Norwegian attracted 29.3 million passengers last year, a 14 percent increase that's likely to put it ahead of SAS AB's Scandinavian Airlines for the first time. Photographer: Simon Dawson/Bloomberg via Getty Images

Norwegian Air Shuttle canceled orders for 97 Boeing jets, the largest cancellation by a single Boeing customer since the grounding of the 737 Max 15 months ago.

New York (CNN Business)Norwegian Air Shuttle canceled orders for 97 Boeing jets, the largest cancellation by a single Boeing customer since the grounding of the 737 Max 15 months ago.

Norwegian's canceled orders represent all of its unfilled jet orders from Boeing -- 92 737 Max jets and five 787 Dreamliners.

At the time Boeing put the list price of that 122 plane purchase at $11. 5 billion, though with an order that size there is no way that Norwegian was paying full list price.

"Norwegian Air is a long-standing Boeing customer.

In addition to Norwegian, Boeing had 322 orders for planes canceled since the pandemic starting hitting air travel in February, with 313 of the orders being for the 737 Max. It has announced plans to cut 16,000 jobs and trim production rates in response to the downturn in demand, but it still had a backlog of 4,744 orders before this announcement.

Norwegian was hurt by the 737 Max grounding, and it has been more vocal than most carriers about demanding compensation from Boeing for the 18 737 Max jets in its fleet that it wasn't allowed to fly.

Although Boeing has reached compensation deals with many of its airline customers, Norwegian's statement said it has yet to reach its own deal with Boeing.

But with these canceled orders, Norwegian has no future purchases planned from Boeing.

Norwegian said in addition to the problems caused by the grounding of the 737 Max, it has had problems with the engines on the 787 Dreamliners it already owns and operates, which it said "affected reliability and resulted in premature and unplanned maintenance. " It also said it was terminating a lucrative service contract with Boeing.

Norwegian said in addition to compensation it is also seeking the return of deposits it paid Boeing for the 97 jets.

Summarizer is on Google News. Now you can get the latest AI summarized news on your favorite news platform.

Don't like Google News? We have an RSS Feed for you.

Suggestions