Beyond the Low Cost Carrier Model

P R O P R I E TA R Y I N F O R M AT I O N
0© 2014 1BlueHorizon Group - www.1bluehorizon.com All rights reserved1BHG | BEYOND THE LOW COST CARRIER MODEL
BLUE PAPER
BEYOND THE LCC MODEL
THE BLUE OCEAN STRATEGY APPLIED TO THE AIRLINE INDUSTRY
March 2014
Updated
Comfort
Pricing
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1BHG, the ‘idea factory’ thinking ahead strategies www.1bluehorizon.com

O ‘How does a Billionaire become a Millionaire? He starts an Airline…’ is not just an old and famous
joke within the Aviation industry, it need to be considered very carefully by anybody thinking to
create an airline…
O Crisis in the airline industry led to the emergence of LCC´s (Low Cost Carriers) – The crisis has
not been caused, but deepened by terrorist attacks on September 11, 2001. Originally, the root
cause was the decline of the historically unequalled high yield level in the late 90s and, in parallel,
considerable cost increase…
O If almost everybody is talking about Low Cost Carrier it is probably because it is law fairs.
Unfortunately for common people low cost is also associate to poor quality and safety. Of course
it is not true…
O I’ve heard a number of times that this business model sounds a little simplistic… Maybe that’s
true at face value, but executing and carrying out such an approach requires great discipline,
consistent communication with the employees base and an inspirational leadership model…
O Summarized, what the heck does low-cost mean? From 1BlueHorizon Group stand point, the
LCC Model is more a spirit on how we are able to develop uncontested market space using
different recipes…
O Welcome ‘Beyond the Low Cost Carrier model’ by thinking ‘1BlueHorizon’…
FOREWORD TO THINK ‘1BlueHorizon’

1BlueHorizon creation concept is an evolution of the ‘Blue Ocean’ Strategy
from INSEAD dedicated to Aviation and related businesses
Blue Ocean StrategyRed Ocean Strategy
Compete in Existing Market Space
Beat the Competition
Exploit Existing Demand
Make the Value / Cost Trade-off
Align the whole system of a player’s activities with
its strategic choice of differentiation OR low cost
Create Uncontested Market Space
Make the Competition Irrelevant
Create and Capture New Demand
Break the Value / Cost Trade-off Throughout Value
Innovation
Align the whole system of a player’s activities with
its strategic choice of differentiation AND low cost
Source: The Blue Ocean Strategy (INSEAD 2005) from Professors W. Chan Kim and Renee Mauborgne - http://www.insead.edu/home

Rather than competing with the confines of existing markets, the approach
suggests developing uncontested market space - making the competition
irrelevant
 Value innovation is a strategic move that allows a market player to create a blue ocean and helps
companies make giant leaps in the value provided to customers through the simultaneous pursuit
of differentiation and low cost
 Competing in overcrowded industries does not sustain high performance
 The real opportunity is to create blue oceans of uncontested market space
 By focusing on competition and “competitive advantage”, players will ignore the two lucrative
aspects of strategy: To find and develop blue oceans and to exploit and protect blue oceans
 In blue oceans, demand is created rather than fought over
 There are two ways to create blue oceans: to launch completely new industries or to create a blue
ocean from within a red ocean when players expand the boundaries of an existing industry
Create Uncontested Market
Space
Make the Competition
Irrelevant
Create and Capture New
Demand
Break the Value / Cost Trade-
off Throughout Value
Innovation
Align Players System with
Strategic Choice

Value creation is a strategic ‘move’ that allows a market player to create a
‘Blue Ocean’, and can be archived through the ‘four actions framework’
Source::The Blue Ocean Strategy (INSEAD 2005) from Professors W. Chan Kim and Renee Mauborgne - http://www.insead.edu/home
Definition
 Value innovation helps companies
make giant leaps in the value
provided to customers through the
simultaneous pursuit of
differentiation and low cost
 Value innovation offers buyers a
huge leap in value, and that will
give rise to new markets
 Value innovation balances costs of
delivering the value proposition
with what the buyer values, to
resolve the trade-off dilemma
 In Value Innovation, instead of
compromising the value wanted by
the customer because of the high
costs associated with delivering it,
costs are eliminated or reduced
Create a new
value leap
that crosses
conventional
market
segmentation
Reduce
Which Factors / Costs should be reduced
well below the industry’s standard
Raise
Which Factors should be raised well
above the industry’s standard
Eliminate
What of the
Factors that the
industry takes for
granted should be
Eliminated?
Create
Which Factors
should be
created that the
industry has
never offered?

Furthermore, six other strategic ‘moves’ are required to re-establish market
boundaries and create ‘Blue Oceans’ - The Six Paths Framework
Red Ocean Strategy
(Head to Head Competition)
 Focuses on rivals within its
industry
 Focuses on competitive position
within strategic group
 Focuses on buyer serving the
buyer group
 Focuses on maximizing the value
of product and service offerings
within the bounds of its industry
 Focuses on improving price
performance within the functional –
emotional orientation of the
industry
 Focuses on adapting to external
trends as they occur
Blue Ocean Strategy
 Looks across alternative industries
 Looks across strategic groups
within industry
 Redefines the industry buyer group
 Looks across complementary
product and services offerings
 Rethinks the functional – emotional
orientation of the industry
 Participates in shaping external
trends over time
Industry
Strategic Group
Buyer Group
Scope of Product or Service
Offering
Functional –
Emotional Orientation
Time
Conventional Boundaries
of Competition

Rather than competing with the confines of existing markets, the Low Cost
Carrier (LCC) approach suggests developing uncontested market space
 Crisis has not been caused, but deepened by terrorist attacks on September 11, 2001. Originally,
the root cause was the decline of the historically unequalled high yield level in the late 90s and, in
parallel, considerable cost increase
 For the ‘classic’ network carriers, the critical situation has also deteriorated due to the current
boom of low cost carriers (LCCs), the only players in the market to gain money despite the crisis
 LCCs capitalize on their simple and efficient business model and their extremely lean cost
structure (up to 60% lower unit costs in comparison with network carriers)
 Wherever LCCs have entered the markets successfully, they gain considerable market share, stir
additional demand and cause a declining yield level. In theory, LCCs can attack 70% of all
domestic/continental traffic markets
 Southwest Airlines traces its roots to the March 15, 1967 incorporation of Air Southwest Co.. On
March 29, 1971, Air Southwest Co. changed its name to Southwest Airlines Co.. The rest of 1971
and 1972 saw operating losses. Southwest entered a terrible marketplace that a Porter five
forces analysis would have said was a blood bath…
Undoubtedly Southwest Airlines was the LCC forerunner in the airline industry
Source: 1BlueHorizon Group Analysis – The Low Cost Carrier (LCC) model is born

The strategy canvas of the ‘Short Haul’ airline industry: The criteria / rules /
boundaries of the airline industry are listed along the x-axis
Source: 1BlueHorizon Group Analysis – Low Cost Carriers Strategy Canvas
High
Relative
offering
level
Low
•
Price
•
Meals
•
Lounges
•
Seating
choices
•
Hub
Connectivity
•
Friendly
Service
•
Speed
•
Frequent
departures
Low Cost Carriers Other Airlines Car

Actually, the airline industry growth is mainly driven by price-sensitive as
well as new air passengers not able to afford in the past air tickets
 Strong LCC-growth results from origin of LCC passengers
– Price-sensitive passengers poached from other airlines
– Demand stimulation towards additional travellers due to
introduction of new routes (mainly secondary airports)
– Demand stimulation towards new air passengers having
chosen another medium of transport before
 Price-related passenger poaching from other airlines is driven
by overlap in customer segments
40%
“Poached
price-sensitive
Passengers”
"Additional
Travelers"
20%
“New Air
Passengers“ Business/
Weekend-trips
- Flight plan
- Flexibility
- Service
- Miles program
Package tour
- Convenience
- All incl. price
- Local service
offering
Price-sensitive Leisure/
Business flights
- Price
- Destinations
- Minimum comfort
Full Service
(FSC)
Charter
Low Cost
(LCC)
Holiday trips
(flight only)
Business
flights1)
Leisure/
Visit
Source: 1BlueHorizon Group Analysis

The budget carrier emergence was clearly (one) 1BlueHorizon creation to
survive and/or to develop uncontested market space…
 The first low cost carrier is generally considered to be
the American company Southwest Airlines which
launched in 1971, with the then revolutionary concept
that you could lower the cost of ticket prices by
eliminating some of the extras and therefore save
passengers money
 (1)Southwest is the largest airline in the United States,
based in Dallas (Texas), mainly for domestic
passengers carried who operates more than 3,300
flights a day and utilizing a fleet of 88 B717 and 613
B737 aircrafts.
 The baton was picked up in the UK by Ryanair, in 1990,
still the biggest contender in the field. Ryanair is often
viewed as the lowest of the low cost, both for its cheap
prices, its service and the fact that many airports are
quite some distance from the town they claim to land in.
The LCC is a model for airlines with different recipes that lead to success…
 Ryanair Ltd. (FR) is an Irish low-cost airline
established in 1985 (by Christopher Ryan, Liam
Lonergan) with is head office in Dublin Airport and its
primary operational bases at Dublin Airport
and London Stansted Airport.
 Making losses, by 1991, Ryanair was in need of
restructuring. Michael O'Leary was charged with the
task of making the airline profitable. He quickly
decided that the key to low fares was to implement
quick turn-around times for aircraft, "no frills" and no
business class, as well as operating a single model of
aircraft (went public in 1997).
 Ryanair operates over 290 Boeing 737-800 aircraft.
The airline has been characterized by rapid expansion
as a result of the deregulation of the aviation
industry in Europe in 1997.
Note: (1)In May 2011 the airline acquired Orlando-based AirTran Airways, with a single AOC since March 1st 2012 and full integration of the carriers taking place over several years.
Source: Companies websites, 1BlueHorizon Group Research & Analysis

The low cost carriers(1) are following different operational model – different
LCC recipes(2) from the ‘1BlueHorizon Cookbook’(2)
Note: (1)Also known as low cost airlines or no-frills, discount or budget carriers
(2) ‘LCC recipes’ are available upon request from ‘1BlueHorizon Cookbook’
Source: 1BlueHorizon Group | Framework
Lessons learned
Airline industry
case study
 Only an up front specified market segment is addressed
(-> targeted value proposition)
Principally doable for
the legacy Air Carrier?
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 LCCs need to achieve significant cost differences along all
cost categories (at 40% of incumbent)
 Wherever LCCs enter markets successfully, they gain
considerable market share and create additional demand
 With superior cost position, extreme pricing is possible which
is hardly to be beaten through incumbents
 Market volume and market share are increased by penetration
and usage increase
 Successful models have often been developed from scratch –
downsizing existing models is questionable

Looking briefly at the economics of European carriers, the LCCs benefits
from big cost differences (up to 60% lower unit costs than network carriers)
Note: (1)ASM = Available Seat Mile
Source: 1BlueHorizon Group Analysis – Overview of the share of total costs 2012
Adjusted Cost
Difference
(8.41 C/ASM(1))
(European
carriers)
► Productivity gain through higher utilization in LCC Business Model
► Different tariffs/work rules (e.g. performance-based remuneration)
► Reduced service concept (e.g. minimum crew complement, check-in process)
Labor
Costs
33%
► Innovative direct sales (e.g. internet bookings, call centers, no travel
agents/commissions)
► Lower GDS charges
Sales &
Reservations
15%
► Young homogeneous fleet
► Aggressive negotiation of maintenance contracts
► Subcontracting
Maintenance 13%
► Dense airport schedule/rapid gate turnaround and no-frills service concept
► Partly favorable contracts at secondary airports
Ground
Handling
12%
► Reduced charges due to less value added by the airport
► Secondary airports
Landing
Fees
9%
► Fuel: Purchasing and fleet efficiency
► Ownership Costs: Financing Conditions
► Onboard Services: No frills service concept
Others 18%
Share of Total
Costs

Beyond the Low Cost Carrier model: definitely the LCC spirit can be used in an
infinite number of ways to support 1BlueHorizon creation
O The Low Cost Carrier business model as 1BlueHorizon outcome give us four
questions to which we can start thinking about during the airline business plan
development process to create uncontested market space (niches):
 Which of the factors that the Aviation & Aerospace
industry takes for granted should be eliminated?
 Which factors should be reduced well below the Aviation
& Aerospace industry's standard (safety & security
excluded)?
 Which factors should be raised well above the Aviation
& Aerospace industry's standard?
 Which factors should be created that the Aviation
& Aerospace industry has never offered?
I sincerely wish that the airline venture will change the trend of air travel…
Time will only tell us…
Note: MENA stands for "Middle East & North Africa / EMENA stands for Europe, Middle East & North Africa
‘from R e d to B l u e Horizon’

Non exhaustive
The airline Puzzle (the venture is tough!) ‘Prepare to Takeoff’ (the target)
Launching an airline is very challenging and similar to a puzzle where the
success depend on how each pieces fit each other
1 B l u e H o r i z o n G r o u p 
From the LCC Idea to the take-Off
Source: © 1BlueHorizon Group | ‘The Airline Puzzle’ Framework

Source: © 1BlueHorizon Group | ‘Start me Up A-Plan’ Framework
1BlueHorizon ‘start me up A-plan’ (Afor Airline) Airline Model highlight
Would you like to see your Aircraft in
the air flying at your brand? You are at
the Idea Phase of your new airline. Do
not fall into same mistake that many
investors do. Prior to your investment,
listen to our professionals by keeping in
mind that airline business requires more
sophisticated management skills and
experience than having capability of
operation of an aircraft, and more
detailed financial and commercial
analysis other than changing numbers
in standard excel sheets.
Best Strategy with a wide vision can be
established at the Idea Phase of Your
New Airline. Do not try to fly with your
wings, as it can hurt falling from high
altitudes, due to the fact that recovery
plan should be identified clearly before
you take off…
the usual ten main phases to be carefully developed to avoid any pitfall
© 1BlueHorizon start me up A -plan

AOC Certification Date
Business
Plan
Commercial
Operation
AOC Approval Process1
Aircraft Registration
Human Resources
National Civil Aviation Authority / Ministery in charge of transportation
Approved Training Organisation
Infrastructure
Maintenance Organizational Approval
Continuous
HR Recruitment
Continuous Infrastructure
Expansion
Projectowneraim/FeasibilityStudy
3
4
5
7
8
6
Enter
Intro
Service
Typical comprehensive high level framework for processing of an Air
Operator’s Certificate (AOC) including its subordinate permissions
Finance&Aircraftsourcing
2
AirlineManagementAdvisorySupport
1109
Source: © 1BlueHorizon Group | Framework - IATA http://www.iata.org/whatwedo/safety/audit/iosa/Pages/index.aspx
The IATA Operational Safety Audit (IOSA) programme is an internationally recognized and accepted evaluation system
designed to assess the operational management and control systems of an airline. It should be a prerequisite for any start-up
airline willing to access once the European airspace to be build on the IOSA guidelines, and then to be certified IOSA.

Source: © 1BlueHorizon Group | The Air Transport Fundamentals Framework ‘to be able to take off and generate revenue’
Having the AOC is not being Airborne… The appropriate infrastructure and
legal framework is required to allow the expected flight phases
Traffic Rights
Over flight Permits
Airport Slots Allocation
4
Engineering
Line-Maintenance
2
Station Management
Ground Hand handling
Fuel Supply
1 Station Management
Ground Hand handling
Fuel Supply
7
Airport authority6
General Civil Aviation
Authority / ICAO / IATA
Air Traffic Control3 5
Operating an airline is not just a matter of having an AOC and aircraft…
Still some homework to be done before to start generating revenue

Last but not least, it appear useful to consider the pie chart that illustrates
the huge operating costs of running an airline…
Source: 1BlueHorizon Group Analysis
The fuel rate in some places might be
definitely a competitive advantage !
Capacity planning a key area
29 %
14 %14 %
8 %
7 %
7 %
14 %
 Whether an airline is starting up, growing or focusing on
profit opportunities, capacity planning is one of the most
important areas in the business-planning process. Although
there are many contributing departments leading up to the
induction of an aircraft, such as operations, finance and
legal, network and fleet planning are responsible for
matching the appropriate capacity to demand, which can
make the difference between an operating loss or profit.
 Three main components - aircraft ownership, fuel and
maintenance - account for more than half of an airline’s
operating expenses. While they are not entirely
controllable, it is essential to factor them into the fleet-
planning decision.
 Excluding ownership and despite the oil fall, fuel makes up
the largest percentage of an airline’s direct operating costs
(40%). As an aircraft ages, its fuel efficiency declines.
Additionally, its maintenance expenses rise. Therefore,
while the ownership costs for an older aircraft might be less
than that of new aircraft, the lower cost of fuel and
maintenance for a newer aircraft may offset the higher cost
of ownership.
‘Modern aircraft are somewhat more
fuel efficient, but they still suck jet fuel
like a Hoover sucks dirt…’
7 %

First cash
positive year
First flight First profitable month
Deposit
Investmentrequired
Minimum cash
= 1 month of cost
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60
Source: © 1BlueHorizon Group | The Air Transport Fundamentals Framework ‘to be able to take off and generate revenue’
… and the cash balance for the first years of operations, generating profit
very quickly is more a dream and financiers are generally cautious
HR cost
Accelerated losses

Keep in mind a few advises before to open the Airline venture door because
even you have the best operational model or an unique market opportunity
(niche), only once the operations start you will know the truth…
■ As within the Aviation & Aerospace industry you will find a
lot of ‘sharks’ looking to make money, be extremely
careful and don’t take everything for granted…
■ As the Aviation is a very competitive industry, keep
everything confidential and avoid talking about your project
until you are very close to start operations…
■ I f you are giving the right kind of segmentation strategy
and good execution, there will be enough room in the
market for multiple service offering….
■ The future performance of your project will depend on the
strength of the selected business model and the focus
going forward…
■ Finally, don’t copy/paste an existing airline. Benchmark
them, learn from them and find out where is a niche, where
is potentially (one) 1BlueHorizon …
A maxim never to be forgotten before to start an airline venture: ‘How does a
Billionaire become a Millionaire? Start an Airline…’

We are used to generate 1BlueHorizon® out of the Rough...
Customers with specialized needs often choose us for our unique
custom turnkey solutions to propel their business further…
THANK YOU
1BlueHorizon Group® Key Senior Personnel
LEONARD FAVRE - Partner, Managing Director Email: leo@1bluehorizon.com
Abu Dhabi (U.A.E.) & Bern (Switzerland)
A strategic thinker with 25 years progressive experience in aviation environments with a proven background as airline project manager,
restructuring and performance improvement advisor or in senior airline executive roles. He started his involvement in the airline industry
following the dramatic grounding of the National carrier Swissair in October 2001 as one of the Swiss ministry of Economy adviser.
Professional background (highlights)
 Chief Restructuring Officer for a family conglomerate, managing a fleet of more than 20 aircraft (wet lease, charter and re-marketing);
 Director Enterprise Improvement for AlixPartner LLP, part of the core team restructuring a major Middle East airline for fleet and strategy;
 Vice-President Business Development & Strategy for Maximus Air in Abu Dhabi, where he managed the wet lease fleet (ACMI & Charter) and
developed it into a leading Middle-East brand through the improvement of operational capabilities and fleet management;
 Senior Associate with Booz Allen Hamilton where he directed successfully, major start-up airline projects in the Middle-East and Europe.
Any clarifications or questions regarding this document should be addressed to:
Note: Detailed References upon request

SOLUTIONS PACK
1BLUEHORIZON GROUP
GENERATING THRUST TO PROPEL YOUR BUSINESS FURTHER...
March 2014
We generate 1B l ue H o r i z o n® out of the Rough... www.1bluehorizon.com
A s s e t M a n a g e m e n t | M a n a g e m e n t C o n s u l t i n g | I n t e r i m M a n a g e m e n t
A b u D h a b i | B e r n | L o n d o n | M a d r i d | M o n t r e a l | P a r i s
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Source: © 1BlueHorizon Group | Corporate profile
1BlueHorizon Group® value proposition is simple — Going the Extra Mile by
generating trust to propel your business further
O 1BlueHorizon Group® (Asset Management | Management Consulting | Interim Management) was
established in 2007 as a network of International aviation professionals, providing objective, independent,
evidence-based analysis, advice and implementation support. We build on the experience of our team to
help clients realize real and measurable results, quickly. Start-ups, restructuring, cost cutting, project
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our knowledge and experience, which means 1BlueHorizon Group® continues
to deliver value long after the project is complete.
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qualifies 1BlueHorizon Group® to provide turnkey solutions for any and
all of your aviation requirements - worldwide.
O 1BlueHorizon Group® range of services is continuously tailored and adapted
to suit the geographical scope and needs of our customers.

Family conglomerates (Governance, Portfolio analysis and investment Strategy)
Economic development (Business review / Cluster / Project Management office)
Air Transportation (Airline / Airport / General Aviation / Aerospace & Defense)
Management Consulting
Operational Improvement
Our understanding of operational
improvement is quite simple:
Whereas restructuring is about
stabilizing a company and fixing
how it does things, operational
improvement is about seeing a
company through the
transformation of becoming more
competitive – going the Extra
Mile.
Asset Management
Fleet Strategy & Planning
With our Fleet Solutions, we can
help you expand your fleet,
transition from older models to
newer aircraft types, or provide
interim capacity. We back our
support with a global team of
technical experts and industry
specialists who will provide you
with the fleet solution and
support that meets your specific
needs.
Interim Management
Knowledge transfer
Finding talent is difficult even at
the best of time. Finding
resources to assist for a short-
term assignment of a proven
heavyweight interim executive
manager to manage a period of
transition, crisis or change within
an organization or to take on
critical projects or senior
positions for a limited time is
even more difficult.
Ahead of Strategies
Three Practices
Shareholders and management
of companies with specialized
needs often choose 1BHG for our
unique custom turnkey solutions.
If you want a business plan or a
feasibility study to assess the
case, or your are burning cash
and running into trouble, or seek
help to assess the case for
entering immunized joint venture
or looking for an interim
management solution…
1BlueHorizon Group® highly
competent seasoned professional
will assist you to propel your
business further… Going the
extra mile ahead of strategies …
1BHG® Business model dedicated to particular Sectors is built around three
Practices providing clients with turnkey solutions to maximize Value Creation
Source: © 1BlueHorizon Group | Business model with Sectors (Horizontals) & Practices (Verticals)
… no matter how complex the issues are!

Our three Sectors expertise covers the entire breadth of the Aviation and
Defense sector, Economic development and Family conglomerates
Airline
Economic development Corporate governance
structure
 Portfolio analysis
 Investment strategy
 The family element
 Performance Management
 Organization Improvement
 Privatization
 Aerospace cluster
 Logistic, Cargo, GH
Airport
Family conglomerate
 Restructuring MRO,
Aerospace & Defence
 Performance Management
 Organization and Change
Management
 Pricing and Revenue
Management
 Market Forecasting
 Branding, Marketing and
Sales
General aviation
Aerospace & Defence
 Feasibility, Business Plan
 Operations Improvement
 Merger & Acquisitions
 Due Diligence
 Fleet Planning
 Business review
 Cluster strategy
 Project Management office
 Public–private partnership
(PPP)
Source: © 1BlueHorizon Group | Core competencies in the main three Sectors
… and our clients well recognize this!

Interim
Manage-
ment
Managing
Consulting
Asset
Management
 The Management
Consulting (MC) Practice
is our ability to strike a
rapport working side by side
with you and quickly
understanding what you
need when the margin of
error is thin… Providing a
highly targeted surgical
strike (to-the-point) to
improve de performance and
going the extra mile…
 The Interim Management
(IM) Practice help you by
giving comfort and control
with relevant seasoned
advisors whenever and
wherever they are needed…
Whereas a management
consultant provides an
advisory role, Interim
managers with performance
improvement focus are
directly responsible in
delivering quick results,
visible and measurable...
 The Asset Management
(AM) Practice works
individually with each of our
clients to develop creative
strategies and solutions for
all types of aviation
equipment, with innovative
financing models.…
Source: © 1BlueHorizon Group | Practices
Performance improvement
Quick results / Hands-on
Turnkey solutions
Knowledge transfer
Ahead of Strategies…
The 1BlueHorizon® difference
1BlueHorizon Group® three dedicated Practices are built to propel clients
business further with a comprehensive approach ahead of strategies
GENERATINGTHRUSTTO PROPEL
YOUR BUSINESS FURTHER...

1BlueHorizon Group® Asset Management Practice – AM at a glance
Customers with specialized needs often choose us for our unique custom solutions
Source: © 1BlueHorizon Group | Asset Management Practice (AM) at a glance
If you’re seeking:
O A dedicated team with proven aviation asset management
experience with the entire scope of services from initial
marketing through technical services, lease management
and remarketing
O Access to a world recognized industry research team with
proven track record working for global clients
O An opportunity to benefit from 1BHGB’s ‘one stop shop’
aviation portfolio of skills and services
O Long term commitment to the industry with a global
presence along an international network of Partners in the
EMEA Region (Europe, Middle East and Africa) enabling us
to stay in contact with potential customers on a daily basis
O Access to high quality independent technical know how for
all aircraft types
O Someone who understands the needs of the investor
community and its customers and has extensive
experience…
Then look no further than 1BlueHorizon
Group® Asset Management Practice (1BHG -
AM) to provide you with the highest
possible standards of service and advice.
Advantages of Operating Lease
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 When you use us to sell, re-lease or trade aircraft, you don’t just get
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 Potential targets are identified by our teams, working through
established processes that get results…fast, and ensure maximum
coverage of the potential customer base.
 Our financial analysis capabilities can then prove decisive in
helping you to choose the best transaction.
 So whether selling, arranging finance or re-furbishing and re-
configuring aircraft for re-marketing, we can provide services to add
real value to the transaction - meaning you get the best possible
deal.
Remarketing is an ongoing activity driven by the market,
opportunity and the owners’ strategy…

1BlueHorizon Group® Asset Management Practice – AM at a glance (cont’d)
Sometimes all you need is clear, concise and professional advice
Source: © 1BlueHorizon Group | Asset Management Practice (AM) at a glance
Technical Services
 Our experience in managing a range of aircraft types for clients
around the world gives you the peace of mind that we are
monitoring the technical condition of your aircraft when they’re on
lease, and continuously reviewing their schedule of inspections to
take into account changes in financial or technical performance of
the lessee. We ensure that all the terms of the lease contracts are
being strictly adhered to and putting us at the forefront in this highly
valuable element of managing the aircraft lease.
 Regular reviews provide you with detailed reports that are designed
to clearly highlight any areas of concern, and provide advice as to
the most suitable means of rectification.
 Our skills in negotiating and managing tailor made vendor and third
party maintenance and service agreements will protect your assets
and ensure they remain attractive throughout their life.
 Our expertise in the key area of maintenance reserve adjudication
ensures that any reserves accumulated by the Lessor are applied
correctly, thus retaining the full value of the asset throughout the
lease term.
Our knowledge and experience of the commercial
aircraft, freighters and business aircraft market,
means we’re well placed to provide you with
quality advice when considering aircraft
acquisitions, lease advice, operational
management, market reviews and outlook and or
remarketing.
Our market knowledge ensures you’re getting the
best available data to make decisions on the price
of your deal and we’ll provide assistance in
discussing the prevailing market conditions for
certain types and their potential impact on current
and future values.

1BlueHorizon Group® Managing Consulting Practice – MC at a glance
Our goal is to provide leadership for helping you achieve higher levels of success
Source: © 1BlueHorizon Group | Managing Consulting Practice (MC) at a glance
CXOs are increasingly focusing on corporate strategies to deliver outcomes that contribute measureable
business value. Aligning technology investments to corporate strategies is the key to create competitive
advantage, grow the business, and increase revenues. Our team members experience enables a richer
understanding of client needs, the competitive landscape, the opportunity landscape, product build out,
revenue drivers, and solutions tailoring.

1BlueHorizon Group® Managing Consulting Practice – MC at a glance (Cont’d)
Our Solutions Center is providing tailor made solutions with focus on results
Source: © 1BlueHorizon Group Managing | Consulting Practice (MC) at a glace – 1BHG Solutions Center (non exhaustive)
 Strategy & Leadership
 Organization & Change
 Due Diligence
 Joint Ventures
 Competitive Analysis
 Network Strategy & Planning
 Pricing Strategy / Yield Management
 Capacity Management
 Airline Alliance & Partnerships
 Cargo strategy and Management
 Aircraft Selection
 Fleet Planning & Scheduling
 Sales & Distribution
 Ancillary Revenues
 Airline Loyalty Programmes
 Product Design and Marketing
 Acceleration of economic growth
 Cluster Strategy
 Tourism Strategy
 Organizational design & Reform
 Project Management Office (PMO)
 Personnel management and planning
 Investment Promotion and Marketing
(incl. Real Estate projects support)
 Strategic studies
 Roadmap & Performance reviews
 Capability definition studies
 Options development and analysis
 Information & Knowledge management
 Building Public-Private Partnership
 Governance
 Ways to structure for the next
generation, understanding the
additional dimensions that influence
the conventional strategy framework -
the family element
 Portfolio analysis, including
restructuring a poorly performing
portfolio and disinvestment
 Competitive Analysis
 Due Diligence
 Joint Ventures
 Mergers & Acquisitions
Economic development Family conglomerateAviation, Aerospace & Defense
We highlight here some of the specific technical expertise of our team members. Of course, we do not list
everything here so if you don't find something listed, please do not hesitate to contact us. We may still
have strong capabilities to serve you...

1BlueHorizon Group® Interim Management Practice – IM at a glance
Business solutions by an independent senior manager, for a limited period of time
Source: © 1BlueHorizon Group | Interim Management Practice (IM) at a glance
■ Organizations have become more streamlined and typically retain core management to
deal with their transactional requirements. As such they no longer have the available
resources to manage exceptional or unforeseen circumstances or have the in-house skills
to deliver specific projects.
■ Interim Executives give organizations the opportunity to utilize management resources to
handle these situations, whilst operating with a leaner structure. Interim Executives provide
functional expertise gained from a wide range of organizations and industry sectors.
■ Interim Management is a short-term executive resource with proven skills to allow
organizations to manage in a period of Transition, Change, Gap management or Crisis.
■ It provides flexibility to organizations when they need to inject a strong track record of
management success combined with specific functional skills.
There are many factors that make interim management an essential option for organizations, which include:
► Interim Executives can be in place within days. The speed of recruitment gives organizations the flexibility to respond to market
forces allowing them to implement key decisions rapidly.
► Interim Executives bring knowledge. They will have had experience of dealing with a number of different challenges and situations
which means they will be over qualified for the role and ensures they are equipped to handle any issues they are asked to deal with.
► Interim Executives are independent and impartial. They offer your organization a fresh outlook whilst providing you with effective
solutions on how to handle situations. They remain objective in dealing with the processes and not seeking promotional
advancement.
► Interim Executives have clear responsibilities to deliver outcomes from planning through to implementation, review and handover.
► Interim Executives bring considerable expertise and are able to transfer both specialized knowledge and ideas on best practice,
giving additional value to their hands-on approach to delivering results.
Interim Executives are not seeking permanent positions and are committed to an Interim career. As an interim is constantly judged on
their ability to deliver against objectives, their previous experience provides organizations with the assurance they seek.

1BlueHorizon Group® Interim Management Practice – IM at a glance (cont’d)
Interim Management is delivering quick results, visible and measurable
Source: © 1BlueHorizon Group | Interim Management Practice (IM) at a glance
Ability to create quickly a
positive working
environment during a
period of change and
transition…
Self motivated and hard
working with the
willingness to provide
and present results on
a monthly basis…
Aware of, but not
driven by, internal
politics, so making
them ideal during
periods of change...
Excellent analytical
skills. Ability to create
roadmap to success
rapidly…
A fundamental
management tool for
shareholders, boards of
directors, management
committees and human
resources directors…
The four elements to any
Interim Management
assignment are
Diagnose, Plan,
Implement and Exit…
A ‘hands-on’ specialist
with significant
experience and a
proven track record in
the related industry…
The willingness to
share expertise and
experience…
… whereas a management consultant provides an advisory role, interim managers
are directly responsible and accountable to the business in their own right !

“1BlueHorizon Group is the
only consulting firm that
works successfully on all
levels: Board level, middle
management,
implementation"
“1BHG senior personnel
come in with strong
views but integrate
perfectly in our teams"
“1BHG has
convinced us
through it's excellent
industry- and
technology
expertise"
"The 1BHG team
knows perfectly well
how to push the
necessary change"
“1BHG guys are implementation -
oriented and their cooperation
with my people is very good "
“1BHG Practice has
very qualified people
who really know a lot
about our industry"
Testimonials - What do our Customers think about 1BlueHorizon Group®
"In each project step, we
could clearly identify
1BHG's added value and
improve the overall
bottom line"
THE ONLY WAY TO DO GREAT WORK IS TO LOVE WHAT WE DO…
A MILE OF RUNWAY WILL TAKE YOU ANYWHERE
NO ONE HAS EVER COLLIDED WITH THE SKY
Note: A list of qualifications is made available separately

Published books and decisive management theories that facilitate critical
dialogue and support 1BlueHorizoncreation
A short selection of inescapable aviation related books
“Baseline”
(Philosophy)
“Low Cost
Carriers”
“Courier
services”
“Various”
Airlines’
Turnaround
“Air Transport
Management”
Source: © 1BlueHorizon Group | Recommended bibliography (non exhaustive)
Partners Network – Aviation Sector

LEGAL DISCLAIMER
© 1BlueHorizon Group®. All rights reserved.
Without the prior written consent of 1BlueHorizon Group®, it is not permitted to modify this document or create derivative works. High quality global airline industry
insight requires investment. Please do not cut & paste the document. Email info@1bluehorizon.com to get / buy additional rights.
This presentation has been prepared by 1BlueHorizon Group® (1BHG or the ‘Company’). This presentation does not constitute or form part of any offer to sell or
issue, or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company or in any other entity, nor
shall this document or any part of it, or the fact of its presentation, form the basis of, or be relied on in connection with, any contract or investment decision, nor does
it constitute a recommendation regarding the securities of the Company or any other company.
The information contained in this presentation has not been independently verified. This presentation does not purport to be all-inclusive or to contain all the
information that a prospective investor in securities of the Company may desire or require in deciding whether or not to offer to purchase such securities.
No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its affiliates (within the meaning of Rule 405 under the
US Securities Act 1933) (‘Affiliates’), members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information
or opinions contained in this presentation or any other material discussed verbally. None of the Company or any of its Affiliates, members, directors, officers or
employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising
in connection therewith.
The information in this presentation includes forward-looking statements which are based on the Company's or, as appropriate, the Company's directors' current
expectations and projections about future events. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms
‘believes’, ‘estimates’, ‘plans’, ‘projects, ‘anticipates’, ‘expects’, ‘intends’, ‘may’, ‘will’ or ‘should’ or, in each case, their negative or other variations or comparable
terminology, or by discussion of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements, as well as those included in any
other material discussed at any analyst presentation, are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and investments,
including, among other things, the development of its business, trends in its operating industry, and future capital expenditures. In light of these risks, uncertainties
and assumptions, the events or circumstances referred to in the forward-looking statements may differ materially from those indicated in these statements.
Forward-looking statements may and often do materially differ from actual results. None of the future projections, expectations, estimates or prospects in this
presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which
such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the
presentation. Forward-looking statements speak only as of the date of this presentation. Subject to obligations under the listing rules and disclosure rules made by
the Financial Services Authority under Part VI of the Financial Services and Markets Act 2000 (as amended), neither the Company nor any of its affiliates, or
individuals acting on its behalf, undertakes to publicly update or revise any such forward-looking statement, whether as a result of new information, future events or
otherwise. As a result of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements as a prediction of
actual results or otherwise.
The information and opinions contained in this presentation and any other are material discussed verbally are provided as at the date of this presentation and are
subject to verification, completion and change without notice.
In giving this presentation, neither the Company nor its advisers and/or agents undertakes any obligation to provide the recipient with access to any additional
information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent.

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