MIAMI – Boeing is bidding to stall a US$1bn lawsuit from Norwegian Air’s (DY) as the Scandinavian carrier seeks a rescue attempt in the Irish courts.

The company and five Irish-based branches received interim protection from creditors last week. The company filed a US$1bn claim for damages against Boeing in the US to recover the cost of 18 of the manufacturers’ 737 Max.

Photo: Joe G Walker

Damage claims in the lawsuit

According to The Irish Times, the lawsuit includes claims for damages for the aircraft that it could not use and also involves maintenance agreements with Boeing.

According to the company, DY calculates that being unable to use the Boeing 737 Max knocked US$185m off its operating profit last year and contributed to the financial woes that prompted key parts of the group to seek the Irish court’s protection.

Norwegian’s Tom Crean tail fin 737 MAX at Dublin Airport Photo: Norwegian.

The Irish entities

The companies under protection are: Norwegian Air International, Arctic Aviation Assets, Drammensfjorden Leasing, Lysakerfjorden Leasing and Torskefjorden Leasing.

It has emerged that lawyers are debating whether the Irish court’s order could be enforced if a creditor took action against Norwegian Air Shuttle in its home jurisdiction.

According to Norway’s newspaper, Aftenposten, University of Oslo legal academic Professor Erik Røsæg agreed that the situation was unclear but that “common sense dictates that what is happening in Ireland should be respected.”

Finally, if the High Court confirms his appointment and protection from creditors on December 7, Mr. Wallace will have up to 100 days to come up with a rescue plan based on these and other proposals.

Featured image: Norwegian Boeing 737 MAX. Photo: Joe G Walker.