IAG CEO warns manufacturers over plane delays, engine issues

LONDON, May 4 (Reuters) - The head of airline group IAG warned manufacturers over delays to plane deliveries and engine issues on Friday, saying they needed to consider its compensation demands.

IAG has had to rejig schedules to mitigate delays to A320neo planes built by Airbus and because of a Rolls-Royce engine issue on Boeing 787 Dreamliners.

Some compensation clauses are built into contracts but IAG CEO Willie Walsh said that wasn’t enough.

“In some cases we’re going beyond what’s in the contract, and we expect suppliers to respond to our demands. They have to factor in the ongoing relationship they have with us,” Walsh told analysts after the group reported first quarter results.

He said IAG was in talks with both Airbus and Boeing over new widebody orders but that Boeing was being “particularly constructive” of late.

Reporting by Victoria Bryan, editing by Sarah Young