Five airlines sign up to "Nespresso model"

A business model taken from the fast moving consumer goods (FMCG) sector could help cut aviation carbon emissions within a few years, if the ambitions of a Los Angeles start-up are realised. 

Universal Hydrogen, the company leading the fight to decarbonise aviation through the adoption of hydrogen as a fuel, is developing conversion kits that would see current passenger plane engines replaced with a hydrogen fuel cell and electric motor, the Financial Times reports. The fuel cells would be sold on subscription.

Why it matters

Apart from the obvious boost to sustainable travel and the marketing implications for the brands involved, this demonstrates how businesses can find inspiration outside their categories. 

Takeaways

• Universal Hydrogen has attracted investment from some big names, including Tencent, GE Aviation and JetBlue.
• Airlines signing deals include Icelandair, Ravn Alaska, Air Nostrum (Spain) and ASL Aviation (Ireland).
• The aim is for the first planes to be operational with the new engines by 2025.
• Once the tech is proven, attention will turn to Boeing and Airbus and their single-aisle aircraft.
• The “ecosystem approach” will enable the use of existing airport infrastructure.

Key quote

“It’s the Nespresso coffee model: we sell the coffee maker for as cheaply as possible, and then we monetise the capsule supply for the life of that product” – Paul Eremenko, co-founder and CEO, Universal Hydrogen.