Engine makers not ‘coming anywhere close’ to desired performance: Azul CEO Rodgerson

Brazilian carrier Azul is not alone in having growth plans stifled by poor turbofan reliability, as carriers worldwide have been hobbled for months by engine issues that have forced them to ground hundreds of jets. Azul CE John Rodgerson told investors during a 3 December meeting in New York City that engine problems are squeezing the Sao Paulo-based carrier’s finances. He also directed sharp criticism toward turbofan makers. Rodgerson says Azul is reviewing costs as it attempts to free up cash in the coming years, adding that roughly 85% of the company’s capital expenses have been going toward aircraft engines. Azul has also been negotiating with engine OEMs for more-favourable terms. “There’s a global problem with OEMs today,” he says, specifically calling out Pratt & Whitney (P&W), GE Aerospace and Rolls-Royce. “None of the engine manufacturers are coming anywhere close to how they should be performing.” Rodgerson says the “majority” of an additional $100m in cash flow that the airline expects to achieve between 2025 and 2027 will be “going back to those OEMs”. “Over the last two to three years, what Azul has asked for is payment terms,” Rodgerson adds. “We asked for help from a cash-flow perspective… [We are] saying, ‘Hey, this engine is not performing to the standard that we signed up for, therefore we want to be compensated fairly for it.’”<br/>