PERSPECTIVES

LESS INFORMATION. MORE PERSPECTIVE.

There is no shortage of information. Data, research, benchmarks and increasingly artificial intelligence provide unprecedented access to knowledge. The real challenge is understanding what matters, what it means — and what to do about it. 1BlueHorizon Perspectives brings together observations, opinions and lessons drawn from decades of hands-on experience across aviation, aerospace and related industries. We keep it deliberately focused. No reports for the sake of reports. No 100-slide decks. Just experienced perspectives on the issues that matter.

FROM FOUR ENGINES TO TWO : HOW TWINJETS TOOK OVER LONG-HAUL AVIATION

For decades, four engines symbolized the capability to fly farther, carry more and cross oceans safely. Today, no new four-engine passenger aircraft is in production. This is not simply a story about fuel efficiency. It reflects a fundamental shift in technology, regulation, airline economics and network strategy. For much of the jet age, four engines defined long-haul aviation. The Boeing 707 opened intercontinental markets to jet travel. The Boeing 747 transformed them by c

Leonard Favre

Jun 119 min read

THE AIRCRAFT RECYCLING PARADOX

(UPDATE from the published article in Aviation Business ME Magazine - Issue September 2015) www.aviationbusinessme.com Why ageing aircraft are flying longer — and why the next retirement wave will reshape aviation lifecycle economics. THE 1BHG VIEW More than a decade ago, 1BlueHorizon warned of an approaching aircraft retirement “tsunami”. Record aircraft orders, more fuel-efficient new-generation models, attractive financing and declining residual values appeared destined to

Leonard Favre

Oct 8, 20259 min read

THE A380 AT THE CROSSROADS

(Published in Aviation Business ME Magazine - Issue April 2017) www.aviationbusinessme.com In the low yield predicament that aviation finds itself, the market has been rife with speculation about the future of the A380... Since it entered commercial service with MSN003 in October 2007 with Singapore Airlines, the Airbus A380-800 has brought a long-lost sense of glamour back to travel. Its three-room suites feature private showers and buttery leather armchairs. It sports in-fl

Leonard Favre

Nov 11, 20204 min read

DITCHING FOUR IN FAVOR OF TWO ENGINES

WHY AIRLINES ARE DITCHING FOUR ENGINES IN FAVOR OF TWO ENGINES ? WHAT DOES IT MEANS FOR AIR TRAVEL? With the end of production of the Airbus A380 and the ongoing retirement of Boeing 747s, are we seeing the end of four engine aircraft? In this article, we take a look at the story of four versus two engines, and why it seems airlines are switching to two, just accelerated by the Covid-19 pandemic, but nothing more. THE FOUR ENGINE JET - WHERE IT ALL STARTED Looking back to the

Leonard Favre

Oct 8, 20206 min read

AIRLINE STRATEGY POST Covid-19

(Published in Aviation Business ME Magazine - Issue April 2020) www.aviationbusinessme.com What strategy will airlines apply post covid-19 and beyond How will the airline industry looks like in near future? In my 25 years career as management consultant or Cx executive, I have never seen a crisis quite like this one. The airline industry has been hit extremely hard by the COVID-19 crisis—even harder, perhaps, than by the events of 9/11 and the 2008 global financial crisis pu

Leonard Favre

Oct 8, 20204 min read

Covid-19’s AIRLINES PARADOX

THE PARADOX, THE LOSERS ARE THE WINNERS... “We’re sure glad 2019 is over. 2020 has been so much better.” This is a quote said by absolutely nobody in the airline industry (passenger airlines, anyway). Nobody will disagree that the 2020 Covid-19 pandemic is the worst crisis the sector has ever faced. Nobody can make money when revenues are essentially zero. Nobody likes depression-like economic conditions. True, but … For the airline industry’s sickest patients — the uncompeti

Leonard Favre

Oct 8, 20206 min read

CAMPAIGN AGAINST THE GULF CARRIERS

(Published in Aviation Business ME Magazine - Issue May 2015) www.aviationbusinessme.com Protectionism as ‘Mother of all Subsidies’? Campaign against the ‘Big Three’ Gulf carriers A battle is raging in the world of commercial aviation that is pitting legacy American and European airlines against new comers eager the shake up the market. The United States and European Union must decide whose side, if any, to take, all the while avoiding the unraveling of existing Open Skies a

Leonard Favre

Oct 8, 20204 min read

AIRLINE MODELS EVOLVING…

(Published in Aviation Business ME Magazine - Issue October 2017) www.aviationbusinessme.com THE EMERGENCE OF LONG-HAUL LOW COST CARRIERS SPELLS A TURBULENT TIME AHEAD OF THE MIDDLE EAST'S BIG THREE AIRLINES. In the last months, the increasingly turbulent travel industry has led speculation in Dubai on how the two carriers owned by the Investment Corporation of Dubai, Emirates and FlyDubai might consider existing synergies and a closer tie-up. Clearly, any “extensive partners

Leonard Favre

Oct 7, 20209 min read

ETIHAD'S EQUITY INVESTMENTS STRATEGY

ETIHAD'S GROUP EQUITY INVESTMENTS STRATEGY STARTED IN 2011 HAVE BEEN A DISASTER? Abu Dhabi based Etihad are big investors in other airlines. With investments in Air Berlin and Alitalia already marking an $808m loss on the airline’s books, it looks like Jet Airways is shaping up to become the latest in a string of disastrous investments. Why do all Etihad’s investments go so very wrong? I remember as it was yesterday being in former EY Chief Strategy Officer Kevin Knight offic

Leonard Favre

Apr 17, 20194 min read

U.S. AIRLINES DRIVE AGAINST GULF CARRIERS

THIS IS NOT A SURPRISE… Did you remember what was Boeing reaction after being overtaken by Airbus in the late 1990? They argue that European governments have violated free-trade rules by subsidizing Airbus for decades… I was just shocked, even disgusted considering the aviation pioneer from the US, following live Richard Quest on CNN and listening Delta Airlines CEO Richard Anderson unacceptable comment related to the 9/11. For me, clearly you’re losing the debate when you tr

Leonard Favre

Mar 20, 20154 min read

DOWNWARD TREND IN OIL PRICES

(Editorial published in Aviation Business ME Magazine - Issue March 2015) www.aviationbusinessme.com THE IMPLICATIONS OF THE DOWNWARD TREND IN OIL PRICES When oil prices shot up a few years ago, many transportation and delivery businesses started adding fuel surcharges to their prices. This year, the Airlines’ spend on fuel will drop to $192 billion, from around $204 billion last year. Indisputably, the drop in the cost of oil is a huge factor in the airline industry, where 3

Leonard Favre

Mar 20, 20154 min read

THE FIRST CLASS FUTURE...

(Editorial published in Aviation Business ME Magazine - Issue December 2014) www.aviationbusinessme.com Is the First Class future an exclusive step above it to take premium flying ‘to the next level’ or a way to project an image of the airline brand excellence? The airline industry has traditionally lagged behind other tourism sectors when it comes to creating customer profiles to anticipate their needs, but in the recent past the airlines have increasingly benchmark against

Leonard Favre

Mar 20, 20153 min read

WHICH STRATEGY TO SURVIVE THE SQUEEZE?

(Editorial published in Aviation Business ME Magazine - Issue October 2014) www.aviationbusinessme.com The Middle East Big Three have all adopted different strategies to grow: which one works best, which one to survive the Squeeze? These are tough times for the airline industry. Buffeted by fluctuating fuel prices, overcapacity, and low-cost competitors, airlines are struggling to stay airborne and financially vulnerable. In Asia, low-cost carriers (LCCs) have seen passenger

Leonard Favre

Mar 20, 20153 min read

NEW MAGIC WORDS FOR AIRLINERS

(Editorial published in Aviation Business ME Magazine - Issue June 2014) www.aviationbusinessme.com THE NEW MAGIC WORDS ARE ANCILLARY REVENUE & BIG DATA... The airline industry is an enigma. On the one hand, it is limited and constrained by complex and what appear to be outdated economic regulations. Yet on the other hand, it is an industry characterized by rapid change, innovation and new technology. It is a dynamic growth industry, but achieves only marginal profitability.

Leonard Favre

Mar 20, 20153 min read

SHARING EXPERIENCE. SHAPING THE CONVERSATION BEYOND THE BOARDROOM.