IAG CEO warns manufacturers over plane delays, engine issues

FILE PHOTO - Willie Walsh, CEO of International Airlines Group speaks during the closing press briefing at the 2016 International Air Transport Association (IATA) Annual General Meeting (AGM) and World Air Transport Summit in Dublin, Ireland June 3, 2016. REUTERS/Clodagh Kilcoyne

LONDON (Reuters) - The head of airline group IAG ICAG.L 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 AIR.PA and because of a Rolls-Royce RR.L engine issue on Boeing BA.N 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