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Speaker 1: It's the second day at the Paris Air Show, and

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Speaker 1: RTX CEO Gregory Hayes has told Bloomberg's Guy Johnson that

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Speaker 1: he's optimistic on growth prospects in aerospace. Hayes was asked

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Speaker 1: by Guy about the company returning to sixty three aircrafts.

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Speaker 1: Here's what he had to say, probably.

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Speaker 2: End of next year. I would say, you know, again, Airbus,

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Speaker 2: we try and stay in lockstep with Airbus in terms

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Speaker 2: of their production yep. And you know they have many

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Speaker 2: challenges besides engines. They still they have a number of

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Speaker 2: shortages out there. But you know, we work very closely

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Speaker 2: literally day to day with them in terms of making

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Speaker 2: sure that they have engines on doc when they need them.

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Speaker 3: There is a huge amount of demand, as you've forty

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Speaker 3: pointed outs. Is that demand sustainable? Are we seeing some

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Speaker 3: of these orders maybe representing over ordering at this present

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Speaker 3: in order to sec kiss delivery slots some way down

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Speaker 3: the road?

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Speaker 2: Now, Indigo is a great example, right five hundred aircraft

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Speaker 2: right on top of the aircraft they already have on order.

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Speaker 2: Those aircraft will not to be delivered until twenty thirty

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Speaker 2: to twenty thirty five. Right now, if you want a

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Speaker 2: new A three twenty. You can talk to Giom at

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Speaker 2: Airbus and he would tell you I'll give you that

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Speaker 2: aircraft in twenty thirty. So I'm sure part of this

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Speaker 2: is securing production slots for the next decade. But growth

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Speaker 2: is real. I mean we're still seeing four and a

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Speaker 2: half five percent revenue passenger mild growth year after year.

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Speaker 2: And Airbus came out with a study last week and

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Speaker 2: said forty four thousand new aircraft in the next twenty

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Speaker 2: years and half of today's fleet of twenty eight thousand

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Speaker 2: gets retired. If you do the math, that means you're

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Speaker 2: going to double the size of the fleet in twenty years.

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Speaker 2: That's a lot of aircraft we all.

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Speaker 3: Do you bring up Indigo? Indigo is a is a

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Speaker 3: good example. Did I think of what people are talking

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Speaker 3: about when it comes to your company right now? India

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Speaker 3: is a tough operating environment for the GTF. Does that

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Speaker 3: put you behind in terms of the competition supply engines

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Speaker 3: or do you think by the time we get to

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Speaker 3: the delivery of those aircraft you'll have the advantage you'll have,

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Speaker 3: which is the new engine Benjing coming through and as

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Speaker 3: a result of which this is a non issue.

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Speaker 2: So the issues that we're having today, which is the

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Speaker 2: same as the competition in these very harsh operating environments

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Speaker 2: call it India, the Middle East, China, where you have

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Speaker 2: heavy particulate emissions in the air with the increased operating

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Speaker 2: temperatures to get the fuel efficiencies. We are seeing problems

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Speaker 2: with deterioration in the turbine blades because all of these

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Speaker 2: particles get sucked into the turbine and they close up

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Speaker 2: the cooling holes. We'll fix that with the Advantage engine.

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Speaker 2: We'll put more cooling and solve this. The Advantage comes

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Speaker 2: into service late twenty four early twenty five, so by

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Speaker 2: what we're talking about in twenty thirty, this should be

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Speaker 2: well behind us. I think what's important is you think

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Speaker 2: about the GTF and I know there's been a lot

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Speaker 2: of headlines about reliability. Two points I would make one

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Speaker 2: is we know how to fix the problems that we

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Speaker 2: have out there. Seventy five percent of our operators operating

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Speaker 2: in benign environments and are not seeing these issues. But

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Speaker 2: if you're in India, or if you're in China or

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Speaker 2: the Middle East, and.

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Speaker 3: Again they of US are selling a lot of planes

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Speaker 3: there right now.

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Speaker 2: They are and it's an issue, and so again we're

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Speaker 2: going to solve it. The other problem, of course, is

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Speaker 2: we cannot get engines through the shop fast enough.

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Speaker 3: Yep.

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Speaker 2: So our typical because of parts. So if you think

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Speaker 2: about it, we're averaging seventy to eighty engines a month

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Speaker 2: coming into our shops. Typically it takes us about three

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Speaker 2: months ninety days to get them turned and back out.

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Speaker 2: Today that's about one hundred and fifty days. Well, those

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Speaker 2: two months, it means there's one hundred and fifty engines

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Speaker 2: or so that are not out there in the fleet

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Speaker 2: and planes aren't flying. So we have to solve the

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Speaker 2: supply chain issue in the shops to get us back

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Speaker 2: on track.

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Speaker 3: Anyway, I talk to carriers, that's one of the issues

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Speaker 3: that they raise. You talk about the issue of heat.

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Speaker 3: There was a time when Pratt and Rolls Royce had

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Speaker 3: an angelize and it worked kind of well. Rolls Royce

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Speaker 3: then walks away from it. You guys are good at

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Speaker 3: gearing gear, turbo fans, they good at Hong Kong. Any

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Speaker 3: chance you can think about invicing them back. Honestly, we

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Speaker 3: talk to people all the time within the industry that say,

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Speaker 3: the data liigns and the engines that came out of

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Speaker 3: it were fantastic.

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Speaker 2: The V twenty five hundred, which was the the engine

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Speaker 2: out of the IAE joint ventures, a phenomenal engine. Right,

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Speaker 2: the still getting, still going, and six thousand engines out there,

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Speaker 2: a third of them have not even had first chopped visits.

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Speaker 2: So it's it's gonna be. It works, it's gonna be

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Speaker 2: a great franchise for another twenty years. The idea of

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Speaker 2: partnering with Roles It certainly has an appeal. I mean again,

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Speaker 2: the investments necessary for the next generation are going to

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Speaker 2: be so large that you're going to have to have partners.

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Speaker 1: That was Grey Great Hayes Our TX CEO of Bloomberg's

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Speaker 1: Guy Johnson