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Boeing Hit By Norwegian Air MAX Order Cancellation and Lawsuit

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Boeing shares took another one on the chin Tuesday after the company received word from Norwegian Air Shuttle that it will not be moving forward with buying nearly 100 remaining Boeing-built planes - and that it is suing Boeing over MAX-related losses.

Oslo-based Norwegian Air said it has canceled orders for 97 Boeing airplanes and will claim compensation from the U.S. airplane maker for the groundings of the 737 MAX and also for 787 engine troubles that it said dented profits even before the coronavirus pandemic pushed the global airline industry into a tailspin.

It also said it is suing Boeing over issues with engine performance of its Boeing-built 787 Dreamliners.

The cancellation includes 92 737 MAX, five 787 Dreamliners and what are called eGoldCare service agreements that extend to both types of planes. Norwegian Air did not specify the amount of compensation it was seeking from Boeing.

The order cancellation and lawsuit follows by a day news that Boeing was set to begin certification testing with federal aviation officials on the grounded 737 MAX this week.

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