Avolon CEO Tells OEMs To Fix Today’s Problems, Not Tomorrow’s

Avolon CEO Andy Cronin wants airframers and engine manufacturers to prioritize making existing aircraft programs more durable, rather than chasing further efficiency and environmental gains.

Speaking with ATW on the sidelines of the Paris Air Show, the boss of the Irish lessor said “almost all airlines” are facing challenges with current-technology engines, across multiple platforms.

“They [airlines] have come out of COVID fairly heavily leveraged, it's very competitive, and they now have new aircraft that they desperately want in order to reduce their operating costs, but the engines aren't operating at a level that they want them to,” he said.

He said OEMs have delivered on their inflight reliability promises, but durability is lagging.

“Durability—how long they [engines] last before they have to be removed—has been massively shortened, particularly in harsh operating environments, for example, India, the Middle East, etc.,” he said.

Cronin said that the problem was that any economic benefits of newer technology aircraft were being offset by the engine problems. While the engine manufacturers are covering “a lot” of that cost and environmental benefits remain, the fuel efficiency savings are effectively being lost.

“We are firmly in the camp that we want the existing program to have more longevity, with more durability. And we actually think that's better for the environment,” he said.

Cronin also believes that the ramp-up of sustainable aviation fuels (SAF) will address an “enormous portion” of aviation emissions.

“We think that's the primary driver of the environmental gain, but that's going to cost money and to pay for that we actually need to get more and longer out of the existing platforms,” he said. “Using the existing platforms for longer actually may make sense.”

He reflected on new aircraft programs over the last two decades, such as the Airbus A380, the Boeing 787 and the Boeing 737 MAX.

“They've got one thing in common: It has been a bigger undertaking than people thought when they set out,” Cronin said. “Rather than take another leap forward, people will be happier to get the existing technology to stay durable.”

Avolon finalized an order for 40 more 737 MAX 8s at the Paris Air Show, firming up a nonbinding commitment that was first announced in April. The lessor also announced a sale and leaseback with Canadian regional Porter Airlines on 10 E195-E2s, marking the first E2s to join Avolon’s portfolio. Porter began commercial E2 operations in February.