Chapter 203 Apple and Google(1/4)
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In the office of the head of strategy department of Muhua Airlines, Ma Cheng looked at an official letter on his desk and fell into deep thought. After thinking about it for three or four minutes, Ma Cheng finally turned his eyes from the letter marked Spring and Summer Airlines.
He moved away and raised his eyes to look at the secretary across the office: "Is this really an official letter from Spring and Summer Airlines? Are you kidding me?"
"I called Spring Airlines to confirm that it is true." Although the secretary said this, the expression on his face was very strange, and he did not seem to believe the content of the letter: "Mr. Ma, the content here will be
Wouldn’t that be incredible?”
"Do you even need to say that?" Ma Cheng frowned, almost frowning into the Chinese character "Sichuan". He really wanted to throw this letter into the trash can, but the content above really touched his heart.
Spring and Summer Airlines actually said that they would sell a self-selected British international route. You can land at any airport and at any time. This would be the most tempting delicacy in the world for any airline. Ma Cheng was attracted by this delicacy.
Already.
Ma Cheng rubbed his temples: "Well, you go check with the other two families to see if they have received similar letters."
According to the above meaning, the three major airlines will jointly compete for this unprecedented high-quality route. If China Airlines and Tiandong Airlines also receive similar letters, then Spring and Summer Airlines is probably not joking, but is really going to do it.
It's a big one.
"Okay, Mr. Ma! But do we need to prepare funds in advance?"
The secretary's words directly stopped Ma Cheng. The secretary's words were based on the truth of the letter. If you want to compete with the other two companies for this international route, you will have to pay a lot. The tens of millions level is conservative.
of.
As Ma Cheng's secretary, she clearly knows the value of this route.
However, even Muhua Airlines is not unable to raise tens of millions of funds, but tens of millions is not a small amount. Of course, it is better to prepare in advance. If you raise funds in a hurry, some unexpected problems may arise.
Just when Ma Cheng was hesitating, an old voice came from outside the door: "First prepare with a goal of 20 million, let's go."
Ma Cheng and his secretary moved their eyes to the door of the office in unison. When they saw the person clearly, Ma Cheng stood up immediately: "Chairman."
The visitor was none other than Si Weimin, the chairman of Muhua Airlines.
Si Weimin entered the office on crutches and glanced at his secretary: "Go ahead and prepare the funds. Ma Cheng and I have something to talk about alone."
The secretary quickly responded and closed the office door after leaving.
Si Weimin walked to the sofa, put his crutches aside, sat down, and waved to Ma Cheng, who was still standing: "Sit down, just chat for a while, don't be so nervous."
Ma Cheng is also an absolute senior member of Muhua, but when facing Si Weimin, he is naturally a little afraid. It was Si Weimin who spoke before he dared to sit down.
"There is no need to verify the fact that Spring and Summer Airlines sells international routes. It is indeed true." Si Weimin said solemnly: "You should think about how to get the routes now!"
Hearing Si Weimin's words, Ma Cheng's eyelids twitched: "Chairman, I can't figure out how an airline like Spring and Summer Airlines can get such high-quality international route resources?"
"There are so many things you don't know. You spend all day thinking about how to make money, and don't care about what's going on outside." Si Weimin snorted heavily: "Spring and Summer Airlines are indeed not worth mentioning, but they have a Xu
Cang, his value as a person is more important than the entire Spring and Summer Airlines."
"How is it possible? What kind of trouble can Xu Cang make by himself?" After Ma Cheng finished speaking, perhaps because he felt that he was too absolute, he immediately changed his words: "Chairman, I admit that I looked down on him a little before. Maybe Spring and Summer Airlines
It can really develop into a good airline, but how can Xu Cang cover the sky with one hand? Did Xu Cang get a self-selected British international route?"
Si Weimin sighed: "Yes, you underestimated him. However, even I did not expect him to be so powerful. In our eyes, a civil aviation pilot is just a dispensable tool.
This is really unprecedented for him. Not long ago, the headquarters of Rolls-Royce and Airbus in the UK conveyed a formal thank you to the General Administration, and the target was Xu Cang."
"Rolls-Royce, Airbus headquarters?" Ma Cheng thought for a moment: "Chairman, you mean British Airways Flight 1009? No, could it be that the madman who mentally calculated the glide path and started reverse thrust in the air was Xu Cang?
Why are you up there?"
"So I said you just keep your head down and make money, and don't care about what's happening outside." Si Weimin was quite dissatisfied with this: "Also, this year's first-class special route has already been owned, did you know?
?”
"Hanjing-Yangcheng? Two days ago, when I asked the General Administration, this route was still unowned. How come it is owned all of a sudden?" Ma Cheng was stunned. This is also a golden domestic route.
How come the key point he was fighting for suddenly slipped away from his hands?
"Who did you give it to? Tiandong? No, Tiandong already has a Hanking-Yangcheng route, and will not give it to you again in the short term. Guoda? But according to Guoda's temperament, if you really get this route
, there have been rumors everywhere for a long time, there is no way there is no news at all."
For an airline, being able to win a golden route is also one of the symbols of the company's strength, and it must be publicized. In Ma Cheng's eyes, China National Airlines can't hide things, but if it's a little good
It’s the kind of thing that needs to be displayed all over the world, let alone a route of the level of Hanking-Yangcheng.
As long as there is any movement at Guoda Airlines, his people will definitely notify him.
Si Weimin said with a faint smile: "It seems that you still have some knowledge. Indeed, it was not taken by the other two companies, but by Spring and Summer Airlines."
"What?" After hearing this, Ma Cheng stood up and said: "That kind of broken company is worthy of winning Hanking-Yangcheng? What is the General Administration thinking?"
"Yes, that kind of bad company won Hanking-Yangcheng, but we couldn't."
Si Weimin's dissatisfaction was almost made explicit, which made Ma Cheng anxious and angry.
"First the Hanking-Yangcheng route, and then the British self-selected international route. There must be some connection between the two, right?" Ma Cheng rolled his eyes and began to think about the possibilities in his mind.
"No need to think about it. During the Jakarta volcanic ash incident, Xu Cang made a bet with CAA, and Xu Cang won. These two routes are his spoils."
"These two routes are the jackpot of a gambling game?" Ma Cheng was shocked: "What did he bet with CAA? The jackpot is so big?"
"Forget it, you can't understand it." Si Weimin shouted: "This time the company will give you a budget of 20 million. If you want to exceed this amount, there is no need to grab it."
Ma Cheng was stunned at this moment: "Why not grab it? For this kind of high-quality route, the profit can reach 30 million in more than a year. I feel that the peak should be 40 million."
You must know that the profits of Muhua Airlines' more than 200 domestic routes are comparable to the profits of less than 70 international routes. This shows how high the profits of international routes are.
Moreover, due to the geographical reasons of Muhua base in Yangcheng, their international route structure is not very good, and there are not many high-quality international routes.
If you take an extremely high-quality route like flying to the UK, its profit margin can reach ten times that of domestic routes. Moreover, the number of domestic outbound passengers has been increasing year by year recently, and the prospects for occupancy of European and American routes are quite good. If you don’t bet on it now, you will have to pay more in the future.
It means spending more money to gamble.
Ma Cheng is confident that he can repay his capital of RMB 40 million within one and a half years without any market assessment. As long as the international routes are good enough, he can make a lot of money on his own.
In fact, Ma Cheng probably understood that if Spring and Summer Airlines were not able to operate such high-end routes in a short period of time, Xu Cang would sell them. In fact, the three major airlines are making money this time, but the difference is that they are making more money.
Just less.
However, even with this business that was guaranteed to make a profit, Si Weimin was still tied up. Twenty million? To be honest, if it was really capped at twenty million, then Ma Cheng felt it was better not to go.
For this kind of route, he felt embarrassed to ask himself to quote 20 million in front of the other two companies.
However, Si Weimin has made up his mind: "After all these years, don't you still understand? Our base, Yangcheng, is not suitable for international routes from Europe and the United States. The latitude of Yangcheng is too low, and it is simply incomparable to taking the great circle route."
Hanking cannot even compare with Shanghai."
You must know that the long-distance intercontinental routes that airplanes fly are not visually straight lines, but somewhat similar to an arc. For example, if you fly domestically to the West Coast of the United States, after taking off, you do not cross the Pacific Ocean, but head north first.
Fly, and then slowly come down south. This is the so-called great circle route.
Visually, the great circle route seems to be longer than the direct flight, but in fact it is shorter. Most of the high-quality routes in Europe and the United States have destinations with relatively high latitudes, which results in the same flight distance between Yangcheng and Hanking.
A flight to a destination takes longer to take off from Yangcheng, which is a fatal problem.
Therefore, it is not unreasonable that Hanking Airport handles nearly 60% of domestic international routes.
Among the three major hubs, Hanking has the most international routes. Shanghai and Yangcheng are at the same level, but Shanghai's international routes have higher profit margins than Yangcheng.
This is the cruel fact that Muhua Airlines has learned from years of investment in international routes.
"Among the three major airlines, China Airlines' international route revenue has grown at a rapid rate of nearly 20% per year, while Tiandong Airlines' international route business has grown slowly due to strategic direction issues, with only 3% growth last year.
growth. We are better, last year was 11%. However, this 11% growth
The growth rate is based on the fact that our investment is the largest among the three major airlines. I am tired of this situation where input and output are not proportional. The objective reality is that it is not based on manpower." Si Weimin said categorically:
"At least on European and American routes, our competitiveness in Yangcheng is the worst among the three major hubs."
Ma Cheng's face was ashen, but he did not dare to refute Si Weimin directly, but that did not mean that he was not angry. Yangcheng's latitude is very low, so it is relatively more competitive to go to countries in the southern hemisphere. But many big cities in the world
Gathered in the northern hemisphere, and the northern hemisphere with higher latitudes, the disadvantages of Yangcheng Airport were immediately highlighted.
It really is destiny!
"In this case, I don't want it anymore, and I won't go either." This was the most serious rebellious word Ma Cheng dared to say in front of Si Weimin.
Indeed, spending 20 million to compete for that route is just a joke for others.
"No, you still have to go."
Ma Cheng was stunned for a moment, all the features on his face were squeezed together, and he said helplessly: "Chairman, you can't let yourself go and humiliate yourself. The cap is 20 million, isn't it just to make people laugh when I go there?
"
"You don't go there to compete for routes. China National Airlines hopes to reach a higher level through that route, and Tiandong Airlines intends to increase investment in international routes. That route may be used by them to turn things around and wipe out the decline.
way out. However, that route does have such weight. These two companies will definitely raise the price very high, and there is no need to compete."
"I understand." Although he was soft in words, in terms of tone, Ma Cheng felt unwilling to accept it no matter what he said: "Then I didn't go there for the route, what else could I do?"
"If you don't have the chance to spend the 20 million, then give it to Xu Cang. We don't invest in international routes, we invest in Xu Cang." Si Weimin said firmly: "I have a feeling that he will bring us far more in the future."
20 million profits."
"Chairman, are you so optimistic about Xu Cang? He is a commoner with no background. He does have some abilities, but it is difficult for him to soar to the sky, right? You said how powerful he is, but his finances must be extremely tight now, otherwise
It is impossible to sell such high-quality route resources. In addition, he still owes money for the aircraft he rented to us before. Yes, he is a good flyer, but it does not mean that he is also a good businessman."
To be continued...