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

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

But the canceled orders, announced Monday, were due to Norwegian's financial problems, not the problems with the jet. The Max had its first test flight by FAA pilots Monday, one of the final steps it will need before it is approved to carry passengers again. Financial problems at Norwegian Air predate the coronavirus pandemic that caused a sharp drop in air travel and trouble for airlines around the globe. It was seeking a debt restructuring in September of last year.

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. Boeing is building the 737 Max again even though it is not yet approved to flyNorwegian 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.

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