Shares of Boeing Co (NYSE: BA) plunged 7% after Norwegian Air cancelled orders for 97 Boeing aircraft. The cancellation includes 92 of the troubled 737 Max planes.
In addition, the carrier will seek compensation from the embattled US-based giant for the groundings of the 737 Max and 787 planes. Norwegian has also cancelled orders for five 787 Dreamliners.
“Norwegian has in addition filed a legal claim seeking the return of pre-delivery payments related to the aircraft and compensation for the company’s losses related to the grounding of the 737-Max and engine issues on the 787,” the company said in a statement.
Grounding of the 737 Max plane took place in March last year after two fatal crashes killed 346 people in total.
“Norwegian Air Shuttle is a longstanding Boeing customer. As with many operators dealing with a very challenging time, we are working on a path forward,” Boeing said in a statement.
Boeing shares gained over 14% yesterday on reports that test flights on its 737 Max have been cleared to go ahead.
Boeing share price has now erased half of yesterday’s gains, trading at $182.15 per share.
Asktraders reported last week that the planemaker’s shares crashed 10% in two days after two analysts downgraded the firm.