Skip to content

Norwegian cancels orders for 97 Boeing aircraft

June 30, 2020
6 min read
Norwegian cancels orders for 97 Boeing aircraft
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Norwegian Air has cancelled its plans with Boeing to purchase nearly 100 aircraft. The struggling low-cost carrier said on Monday that it's cancelled its remaining order for 92 Boeing 737 MAX aircraft and an additional five 787 Dreamliners.

In addition to cancelling its order with Boeing, Norwegian said that it had filed a lawsuit against the aircraft manufacturer in an effort to get money back as a result of the grounded 787 and 737 MAX aircraft. Norwegian is seeking pre-delivery payments and compensation for its losses related to both the 787 and 737 MAX.

The carrier didn't specify how much it was seeking from Boeing.

Sign up for the free daily TPG newsletter for more aviation news.

"Norwegian has engaged in a commercial dialogue with Boeing with a view to resolving its 787 and 737 MAX issues and obtaining compensation for its losses," the airline said in a statement. "The dialogue has [yet to date] not led to an agreement with a reasonable compensation to the Company."

The airline has struggled with many of its aircraft from Boeing. First, the ongoing Rolls-Royce engine issues with the Boeing 787s had forced Norwegian to temporarily ground some of its long-haul Dreamliner fleet while they underwent necessary maintenance.

Related: How airlines are affected by the Rolls-Royce engine trouble on the Boeing 787

Then, the airline took delivery of its Boeing 737 MAX aircraft, which it used on some transatlantic routes for a short time. However, the carrier was forced to ground the fleet, costing it millions. And as a result, it has suspended some of its smaller-city transatlantic routes, such as those to Newburgh (SWF) and Hartford (BDL).

Norwegian cancelled the remainder of 737 MAXs three years to the day after it took delivery of the first of the order.

Sign up for our daily newsletter

"We are not going to comment on commercial discussions with our customers," a spokesperson for Boeing said in a statement. "Norwegian Air Shuttle is a long-standing Boeing customer. As with many operators dealing with a very challenging time, we are working on a path forward."

Norwegian has 18 737 MAX aircraft currently in its fleet, though they remain grounded as a result of the aircraft's global grounding since March 2019.

This week, amid the coronavirus-spurred downturn in travel, Boeing took a step towards relaunching the 737 MAX into commercial service. On Monday, the FAA said that it was working with Boeing on a series of recertification flights that would be used to clear the MAX for reentry into commercial service.

Related: Boeing’s 737 MAX is one step closer to carrying passengers again

Norwegian has long struggled with its finances — even before the coronavirus crisis. In 2018, strong rumors circulated that there was a chance it would shutter after reporting a net loss of 1.5 billion Norwegian kroner ($175 million USD).

In July 2019, the airline's long-time CEO Bjorn Kjos stepped down as the head of the company. Since January 2020, Jacob Schram has taken over the role of CEO at Norwegian.

Related: Coronavirus crisis raises questions about the survival of already-struggling airlines

In response to the coronavirus, Norwegian has taken a conservative approach. In April, the company announced that it was planning to keep the majority of its operations — including long-haul and European — grounded until at least April 2021.

However, the carrier broke those plans and announced in June that it would resume some European routes as of 1 July. The resumption of long-haul routes remains on hold until April 2021.

Amid the coronavirus, the carrier got a $27 million lifeline from the Norwegian government.

Featured image by Robert Alexander

Top offers from our partners

How we chose these cards

Our points-obsessed staff uses a plethora of credit cards on a daily basis. If anyone on our team wouldn’t recommend it to a friend or a family member, we wouldn’t recommend it on The Points Guy either. Our opinions are our own, and have not been reviewed, approved, or endorsed by our advertising partners.
See all best card offers

TPG featured card

Best card for premium perks while traveling
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards

2 - 10X points
10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
2X2 Miles per dollar on every purchase, every day

Intro offer

75,000 bonus miles
Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

Annual Fee

$395

Recommended Credit

740-850
Excellent
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023
Best card for premium perks while traveling
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
2X2 Miles per dollar on every purchase, every day
  • Intro Offer
    Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

    75,000 bonus miles
  • Annual Fee

    $395
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    740-850
    Excellent

Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023