Go back in time and be a chaebol

Chapter 1602: Stifling the American Aviation Industry (Third update, please subscribe)

At the beginning of the new year,
After the news spread that Borneo Airlines would build an aviation free port in the Middle East.

It immediately attracted the attention of the capital community. Although many people were not optimistic about such a large-scale investment, they still participated in it.

After all, Borneo Air has a backer.

However, unlike others, after Li Yian saw the airline's investment decision in the newspaper, he immediately praised it.

“It’s a very good investment.”

Upon hearing this, Zhang Zeyuan said:
"Sir, does this mean you are very optimistic about this investment?"

"Perhaps the explosion rate in the early stage is not very significant, but in the long run, it is still very appropriate to establish such an aviation hub in that place."

Although he knew little about the aviation transportation industry, Li Yian had heard of another world-famous city, Dubai.

What makes Dubai, the internet-famous city, famous?
Is it to take advantage of its geographical location to become an aviation hub and then build itself into an internet-famous city?

What impression has Dubai left on people for a long time?
He is a local tyrant.

It is wealth and luxury!
So many wealthy people have forgotten that owning a property in Dubai is a fashion. So-called Internet celebrities also regard visiting Dubai as a fashion.

When a place is associated with wealth and luxury, fashion and popularity, then that place is bound to become the forefront of popularity.

"After all, there needs to be a transit point like this between Europe and Asia. Rather than having it in other countries, it is better to have it on our own land."

Li Yian thought for a moment, then said:

"Moreover, this will also help us further develop the area in the future! After all, there is desert everywhere, and only with the right industries can we achieve further development."

Of course, as long as the population increases, when the 99-year lease expires, the local government can decide the future ownership through a so-called "referendum."

Li Yian never thought about spitting out the fat meat that he had eaten with great difficulty.

One of the important reasons why we haven’t spent much energy there in recent years is the population!
This population does not mean that tens of thousands of people will be directly relocated there. Why would they be relocated to the desert and eat sand?

If you want people to live there willingly, you must have suitable industries.

Make this place another Dubai.

It's also a good choice.

However, it is still too early now, because if you want to build a new Dubai, you need not only an aviation hub, but also global Internet, satellite communications and other infrastructure.

This is also the fundamental reason why the world later became a global village, that is, the rich can work anytime and anywhere no matter where they are.

Until all this is done, the rich usually don't leave their strongholds easily.

"Now that you mention it, this project seems to have great prospects."

After thinking for a while, Zhang Zeyuan said:

"In this case, I can buy the corporate bonds they issue with confidence."

“Just invest with confidence.”

Li Yian said with a smile.

"This investment is definitely not a short-term one. Its return process is a long-term one. Well, maybe it will take 20 years for it to really mature. Of course, 20 years of bond investment is just the beginning."

Then Li Yian briefly chatted with him about the future planning direction of the city. Listening to your description, Zhang Zeyuan said.

"Next, if the city really develops in that direction as you said, when it becomes a shopping center between Europe and Asia, will it have an impact on local businesses?"

Zhang Zeyuan said this because, to a certain extent, Changan and Kuching have now become shopping centers in Asia, attracting millions of people to spend money there every year.

“No, they serve different people.”

Li Yian shook his head and said.

"In the future, the customers attracted there will mainly come from the Middle East and Europe. For European tourists, Southeast Asia is too far away. Compared with the cold Paris and London,

Exotic cities are more likely to attract them, and they will spend the winter and spend money there. Only a small number of them will come to Asia specifically to spend money. "

After thinking for a while, Li Yian added:
"After all, the flight is more than ten hours. Unless supersonic passenger aircraft can be widely used one day, we are too far away for European guests."

Hearing that you mentioned supersonic aircraft, Zhang Zeyuan tried to speak.

"Sir, Lin Kangwei from the Aviation Industry Corporation has been hoping to report to you in person on some of the projects the company is working on. Do you think you would like to meet him?"

"Aviation Industry Corporation..."

After thinking for a while, Li Yian said:
"Please arrange a time, maybe in the next two days. I also have something I want to discuss with him."

The next afternoon, in the study of the official residence, Li Yian was flipping through a report about the new generation of jet airliners.

"The current market in the aviation field is far larger than any expert could imagine."

As the manager of Borneo Aerospace Industries, Lin Kangwei reported to you when you were reading the report:

“Twenty years after the war ended, the results of the post-World War II baby boom were clear: Europe seemed to be awash with young people.

Take France for example, young people in their 20s once accounted for 16% of the country's population. The proportion in Britain and Germany is also around 14%.

It can be said that Europe today is young and full of vitality.

After the Marshall Plan, Europe's economy fully recovered and grew rapidly, and young people were keen to fly to distant places to enjoy their holidays.

The planes they take are either made by us or by the United States. The aviation industry in European countries seems fragmented. They do not have the strong aviation industry foundation and sufficient funds like us and the Americans, which leads to the extremely backward aviation manufacturing industry in Europe. "

After nearly 20 years of development, SEA Aviation Industry has left the whole of Europe far behind. Even if we leave aside the military aviation market, in the civil aviation market, Aviation Industry Corporation's competitor has always been Boeing.

Even Douglas was not considered a competitor by AVIC.

That is why there is a hint of contempt in the tone towards the European aviation manufacturing industry.

Lin Kangwei then emphasized:
"This also means that Europe will be one of our most important markets in the future. But now we are facing unprecedented challenges in this market."

"Do you mean the Boeing 447?"

From the report, we can see that this 447 should be another world-famous Boeing 747.

"Yes, Your Excellency."

Lin Kangwei said.

"The moment of crisis for us came when Boeing on the other side of the ocean launched the B447 program: an aircraft that could carry twice as many passengers as the C2 and could also fly intercontinental.

相比日渐增长的民航运输需求，c707的运输能力已显露出不足；相比协和3+3布局的逼仄，它3+4+3的布局显得非常开阔；庞大的运力使得它的运营成本会比c707低得多;并且，它还能改装成货机实现“客货两开花”。

Your Excellency, according to the progress of the next research, Boeing may deliver it for use by the end of this year or next year.

By then we will be facing unprecedented challenges.”

"So you launched the 727 program, right?"

Closing the report, Li Yian said:
"The company also needs to develop a similar large aircraft to compete with it."

"Yes, sir, just like the 707 and the 407, they are two highly similar, competing aircraft. If we want to occupy the market, we must have an aircraft similar to Boeing.

So I think it's necessary for us to move forward with this project."

Then, Lin Kangwei emphasized:

“We have also been in talks with several airlines including Borneo Air, Pan Asia Airlines and Pacific Airlines. They are all interested in large passenger aircraft.

British Overseas Airways Corporation is also very interested. I believe that its sales in the future will not be less than 400.”

While Lin Kangwei described the future market for large passenger aircraft, Li Yian remained silent.

Compared to the huge market they saw, Li Yian thought of the failure of A380.

The A380 is the largest aircraft in the world and is Airbus's secret weapon that it wants to compete with Boeing's 747.

When it took off into the sky, Airbus was excited; they believed the A380 was the future.

From an engineering perspective, the A380 is an absolute masterpiece of industry. After its birth, it was once the face of airlines around the world.

However, this top flagship aircraft, which symbolizes the strength of Airbus, came to an end 15 years after its first flight.

The advent and eventual untimely demise of the A380 were entirely due to Airbus's misjudgment of the market and aviation transport model.

Thinking of the failure of A380, Li Yian thought for a moment and said:
"Of course, in theory, we do need an aircraft that can challenge Boeing. 'If you can, so can I, and better.' This is a way to show the company's strength. But..."

But this made Lin Kangwei's heart twist into a ball.

Then he heard His Excellency continue to speak.

"We must also recognize that the world's civil aviation market has limited demand for large aircraft like the one involved in the accident.

If we produce such an aircraft, we will definitely compete fiercely with Boeing in the market. In this case, our profit margin will probably be affected.”

In fact, it is not just the profits that are affected, it is bound to also affect the relationship with the United States.

In fact, the competition between the two companies has become increasingly fierce since Boeing launched their jetliner.

Although the United States used aid to sell Boeing aircraft around the world, market competition between the two companies has become increasingly fierce.

When it comes to the competition between the two companies, Li Yian's words were slightly proud.

After all, it was he who had established Borneo Aerospace Industries and he had chosen jet aircraft as a breakthrough point for overtaking others.

Facts now prove how correct his choice was.

Following on from its first-mover advantage in jet airliners, Borneo Aerospace Industries, now known as Borneo Aerospace, has become the world's second largest civil aircraft manufacturer.

Of every 3.5 jetliners sold worldwide, 4 are C-Series aircraft, while Boeing's is .

How can we not be proud of such a brilliant achievement?

But while feeling proud, Li Yian also saw a hidden danger.

"USA!"

Li Yian said with a heavier tone.

“We must consider the role that the United States will play in future market competition. As for the current competition between us and Boeing, we have already seriously threatened Boeing’s survival.

In order to strike us, the United States will definitely take some corresponding actions. After all, they have always been far ahead in the road of being inhumane.

So we have to take that into account.”

(End of this chapter)