Norwegian Air is withdrawing an order for a total of 97 Boeing aircraft. The company also announces that it intends to initiate legal proceedings against aircraft manufacturer Boeing.

The canceled order concerns 92 737 Max aircraft and five 787 Dreamliners. The aircraft were part of a huge order Norwegian placed in 2012, when it intended to buy a total of 222 new aircraft from Boeing and Airbus.

The announcement comes ahead of Norwegian holding its delayed annual general meeting on Tuesday.

In addition to getting back the advance payment on the canceled aircraft purchase, the Norwegian airline also wants compensation for the 737 Max aircraft that it has already purchased, but which have been grounded since March 2019. The airline also wants compensation for the engine problems that the 787 Dreamliner model has been experiencing.

”"Norwegian has had a dialogue with Boeing to resolve the problems with the 787 and 737 Max and to obtain compensation for the losses. The dialogue has not yet led to an agreement on reasonable compensation for the company," Norwegian writes.

If an agreement cannot be reached, Norwegian will initiate legal proceedings against Boeing.

Even before the coronavirus pandemic hit, Norwegian was hit hard by several setbacks. The new 787 Dreamliner turned out to have several technical problems, and then the 737 Max aircraft were grounded after the model suffered two serious crashes within six months.

In May, Norwegian was saved from bankruptcy through a debt restructuring that meant leasing companies and lenders took control of the company.

At Tuesday's general meeting, the hope is that shareholders will approve a plan with new loans and issues, which will hopefully generate around 2.2 billion Norwegian kroner, which Norwegian, according to the annual report, will need for next year.

Source: TT