“I think it’s appropriate to use the phrase “it’s hard to get back” to sum up the current situation of Northwest Airlines.”
The Restructuring Committee, Planning Commission, Civil Aviation Administration of China, Northwest Airlines, Hanzhong Provincial Government, Chang'an Municipal Government and Yao Yuan, Chairman of the Board of Directors of China Chunfeng Asset Management Group, are meeting.
An important meeting about where Northwest Airlines will go.
Like every government meeting he attended, Yao Yuan sat in the corner inconspicuously. In fact, it was not that he deliberately kept a low profile, but that at this kind of meeting, there was no place for a private entrepreneur like him in the first row.
of.
He could only sit in the corner of the second row, in the same row as the leaders' deputies and secretaries.
Xia Honghua is undoubtedly the protagonist. As the dual-duty director and assistant director of the Restructuring Commission and the Planning Commission, he can even express opinions on behalf of the Finance and Economic Commission, because his immediate boss is the vice president in charge of the national economy, and he has a grasp of the national economy.
His words basically negated the work of Northwest Airlines' current leadership team.
The leaders of Northwest Airlines were constantly wiping their hands in cold sweat and did not dare to express their anger.
Xia Honghua glanced at the leaders of the local government, the Civil Aviation Administration of China, and Northwest Airlines present, and said in a deep voice, "The June 6th air crash exposed serious flaws in Northwest Airlines' management. As leaders, you, in the past few years, have
Haven’t you thought about it?”
"I don't think so."
He asked and answered himself, and said in a very bad tone, "Since the establishment of the company in 1989, Northwest Airlines has never made a profit, and has to rely on financial subsidies to tide over financial difficulties every year. I can't help but ask you, what are the six major airlines?
, why are you the only one not making a profit? Has the policy of separating government and enterprises failed? If so, why are other companies developing well?"
Xia Honghua's unceremonious questioning made even the leaders of the local government feel embarrassed.
The local government is dumb and unable to tell the story of its suffering. After the separation of government and enterprises, although Northwest Airlines is still a central enterprise, it is a central enterprise in Chang'an after all. The local government subsidizes Northwest Airlines.
After so many years, it has been unable to make a profit, and the local government cannot bear it anymore.
Xia Honghua was both summarizing and criticizing. At this time, Yao Yuan knew that compared with Northwest Airlines, the situation of the old Beihang was considered to be better. This also planted the seeds for Northwest Airlines to be merged in the future.
Yao Yuan was deep in thought, weighing whether to put forward his opinion to Xia Honghua.
"Today is a meeting to deal with the aftermath of the June 6th air crash, and it is also a meeting to discuss the future of Northwest Airlines. Please feel free to speak your mind," Xia Honghua said.
The leader of the Civil Aviation Administration of China said categorically, “Restructure, reform, only restructuring can re-energize Northwest Airlines. Clarify financial relationships, formulate more stringent management systems, and strengthen employee training, especially in terms of professional ethics and professional qualities.
It needs to be strengthened.”
Zhan Tucai, the general manager of Northwest Airlines, took up the topic and said, "Funding is also a big problem. I hope the state can allocate a restructuring fund. I think the rest can be solved through listing financing. Carry out shareholding reform and truly release the corporate management.
permissions."
He almost said directly that it was an MBO acquisition, that is, a management buyout.
Through management buyout, it is an acquisition behavior that changes the control structure and the company's capital results within the enterprise, turning the original operators of the enterprise into owners of the enterprise.
Undoubtedly, the general manager has studied this method.
This general manager of Zhantucai is not local at all, but is in line with international standards.
With another leader, he might have been fooled, but Xia Honghua wouldn't. He learned a lot of advanced business operation and management experience from Yao Yuan, and he knew exactly what Xiao Jiujiu felt as the general manager of Northwest Airlines.
However, he did not tell the truth, but asked, "What kind of restructuring method?"
Zhan Tu looked at the others and hesitated.
Xia Honghua said, "General Manager Zhan, let me know if you have any ideas. Today's meeting is a brainstorming meeting with the purpose of saving Northwest Airlines."
Yao Yuan touched his nose, wrote two lines on the notebook, then tore it out and folded it.
Zhan Tucai said, "I have studied many Hong Kong-funded enterprises, international enterprises, and the reform of state-owned enterprises in developed countries. There is an experience that I think is very suitable for Northwest Airlines."
After a pause, he said, "What are the root causes of the many problems in state-owned enterprises? I think everyone can find a hundred, but it must be admitted that the limited power of management and low enthusiasm is one of the important problems.
"
He was quite righteous and said, "Although the government and enterprises are separated now, it is still an enterprise under the management of the Civil Aviation Administration of China. I also said it in front of the leaders of the Civil Aviation Administration of China today, saying that the enterprise is self-operated, but the financial approval authority
Most of them are still in the Civil Aviation Administration of China, and industry management is still subject to the business guidance of the Ministry of Transport, not to mention the Air Force as a big mother-in-law."
"I would like to use an analogy. If you want to introduce advanced aircraft, one or two years have passed since all levels of approval have been passed. The opportunity for the company to expand its business scale has also passed. This kind of management method is very rigid. To adapt to marketization, it must be completely reformed.
Let the management and employees acquire the company, transform it from a business manager to a business owner, and operate it completely independently. The Civil Aviation Administration of China is only responsible for industry management."
"This not only improves the efficiency of the company's administrative decision-making, but also stimulates the vitality of the enterprise. This is also a state-owned enterprise reform method commonly adopted by many developed countries."
Zhan Tu finished it in one breath.
What surprised Yao Yuan was that after he finished speaking, many people nodded in approval. It seemed that many leaders were deeply influenced by the so-called advanced experience from abroad and did not consider China's own actual situation.
Xia Honghua was not so easily deceived. He pointed out pointedly, "Management buyout? Hasn't the nature of state-owned enterprises changed?"
Zhan Tucai did not hesitate to use New Beihang as a shield, saying, "Northern Airlines' restructuring has also changed the nature of the enterprise."
Since Northern Airlines can be acquired by private companies, why can't Northwest Airlines' management acquire its own company?
Yao Yuan immediately frowned.
Sitting next to him was Xia Honghua's secretary. He handed over the folded note and whispered, "Give it to Director Xia."
The secretary naturally knew that Yao Yuan had a very good relationship with his immediate boss, and that his immediate boss valued Yao Yuan's opinion very much.
He took the note and nodded, but did not open it to read.
At this time, Xia Honghua said, "New Beihang is not a private enterprise, but a joint venture. The second largest shareholder is Xinjian Group. Maybe everyone is unfamiliar with Xinjian Group. This is a group company just established by the Construction Corps, and it is a genuine state-owned enterprise.
"
This information was something that Zhantu did not grasp, and he didn't know how to deal with it for a while.
The secretary walked over and handed the note to Xia Honghua, whispered something, and then quietly stepped back.