IATA Chief Slams OEMs: ‘Stop Gouging Us’

Willie Walsh said it is “totally unacceptable” for supply chain issues to drag on into the 2030s.

Rolls-Royce engine
Rolls-Royce engines power the A330neo. (Photo: AirlineGeeks | William Derrickson)
Gemini Sparkle

Key Takeaways:

  • IATA Director General Willie Walsh harshly criticized aircraft and engine manufacturers for failing to resolve persistent supply chain issues, which have significantly impacted airlines.
  • These supply chain problems have resulted in an 18,000+ aircraft order backlog, aging airline fleets, and an estimated $11 billion cost to the industry in 2025 due to missed efficiency gains and higher maintenance.
  • Walsh expressed frustration that manufacturers' profits were rising despite airline struggles and demanded engine OEMs improve product quality and reliability.
  • He praised CFM International for renewing an agreement with IATA to promote competition in aftermarket services, aiming to improve parts availability and maintenance capacity.
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The head of the world’s largest airline trade association has some harsh words for aircraft manufacturers and suppliers.

In remarks at the International Air Transport Association’s annual meeting in Rio de Janeiro, director general Willie Walsh called out manufacturers, and specifically engine manufacturers, for, in his view, not doing enough to resolve longstanding supply chain issues.

The global aircraft order backlog is now over 18,000, Walsh noted, and the average fleet age has reached a record 15.2 years. Carriers saddled with aging aircraft are paying the price in the form of missed efficiency gains, higher lease rates, and climbing maintenance costs, he said.

In total, supply chain issues are believed to have cost the airline industry about $11 billion in 2025 alone.

“Deeply disappointed customers have not dented manufacturer finances,” Walsh said. “For example, most engine manufacturer profits were up double digits. I cannot share my reaction to this paradox in polite company, so I leave you to draw your own conclusions.”

A combination of factors has slowed aircraft engine production and deliveries over the past six years, including labor and material shortages and quality and reliability issues. Probably the most notable example of the latter is the ongoing mass recall and repair of Pratt & Whitney’s PW1000G; some of the engine’s parts became susceptible to cracking due to contamination of powdered metal used in production.

“My message to the engine OEMs is simple – stop gouging us and get back to making great engines that work and that last,” Walsh said. “Allowing these failures to extend into the next decade is totally unacceptable to the customers.”

Walsh reserved some praise for CFM International, which recently renewed an agreement with IATA to promote competition in aftermarket services. The deal gives airlines and MRO providers more flexibility in servicing and repairing CFM powerplants, and allows independent MRO providers to compete for engine work

While not a “magic remedy or even a new solution,” Walsh said, the agreement’s terms could improve parts availability and maintenance capacity.

Zach Vasile

Zach Vasile is a writer and editor covering news in all aspects of commercial aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.
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