Azorra Sees Pratt & Whitney Engine Issues Easing, Strong Demand for Regional Jets

Aircraft lessor Azorra sees a “light at the end of the tunnel” for the persistent engine issues at RTX subsidiary Pratt & Whitney, according to company president Ron Baur. Speaking to Reuters, Baur also noted that demand for smaller, fuel-efficient jets remains strong despite wider industry disruptions and rising fuel prices.

Engine Troubles Improving

Pratt & Whitney's geared turbofan (GTF) engines have faced years of challenges, including maintenance delays and metal contamination issues that have grounded hundreds of aircraft globally. These engines power key aircraft families, including the Embraer E2, Airbus A220, and Airbus A320neo.

"We think Pratt for sure has gotten better," Baur said on the sidelines of an Embraer event in Brazil, comparing the problems to the "teething issues" often seen with new aviation technologies. This sentiment follows a statement from Pratt & Whitney in July that maintenance disruptions had significantly eased for the engines used on the smaller A220 and E2 models, though industry sources suggest challenges remain for the larger A320neo family.

Resilient Aircraft Demand

Despite recent geopolitical tensions and higher fuel prices, Baur described the current crisis as "manageable" and said it has not materially weakened the appetite for new aircraft. A global shortage of available planes continues to bolster the leasing market.

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Baur highlighted several key factors supporting the market:

• Carriers have successfully passed on some higher fuel costs to passengers.
• Uncertainty may slow some fleet decisions, but overall demand remains "really quite strong."
• Demand is particularly high for smaller, fuel-efficient jets like the Embraer E2 and Airbus A220, which seat up to 150 passengers.

Competitive Landscape

Azorra, which has commitments for both the Embraer E2 and Airbus A220, sees a healthy market for both competing aircraft families. Baur noted that while Embraer's E2 series outsold the A220 three-to-one last year, a recent major order from Air Asia for the A220 underscores the competitiveness of both platforms.

Looking ahead, Baur reiterated interest in a potential stretched version of the A220, often dubbed the A220-500, which Airbus has studied but not yet launched. "I think a stretch - 500 would be very competitive," he said.