Qatar CEO says cancels first A320neo over delays

DUBLIN, June 3 (Reuters) - Qatar Airways has cancelled its first Airbus A320neo jet and remains at an impasse with the European planemaker over delays in deliveries caused by engine problems, its chief executive said on Friday.

The delays are having an impact on Qatar Airways' bottom line, but the carrier said it is not seeking compensation, Akbar Al Baker told reporters.

The airline announced in May it was reducing the frequency of more than a dozen regular routes from Doha because of hold-ups in the delivery of new planes from European manufacturer Airbus.

"We are 5 aircraft down this summer. This is why we are screaming because it is making a huge impact on my bottom line," Al Baker said at the International Air Transport Association annual meeting in Dublin.

"We are still at an impasse. We have walked away from our first A320neo because more than a certain number of days late, so exercised a walk away clause," Al Baker said.

He said he still expects Airbus will be able to deliver 10 of the larger A350 planes as promised this year.

"We will have no alternative but to lease. We awaiting final response from airbus," he said. We are "not talking about compensation. It (Other OTC: ITGL - news) is about us getting aeroplanes so we can meet network requirement." (Reporting by Victoria Bryan; Writing by Conor Humphries)