An axial flow compressor is disclosed with a plurality of rotors. Each rotor includes a disk having an outer rim. Each outer rim is coupled to a radially outwardly extending rotor blade. The case is coupled to a plurality of radially inwardly extending stator vanes, i.e. cantilever-type stator vanes. Each stator vane is disposed between two rotor blades and extends towards one of the outer rims and terminates at a tip disposed in close proximity to one of the outer rims. At least one of the outer rims includes a serrated outer surface that faces the tip of a stator vane which results in a vortex flow causing air that would normally leak through the clearance between the stator vane and the outer rim to engage the stator vane to a greater degree thereby increasing the efficiency of the compressor.