We are all reborn, who wants to be the richest man?

Chapter 699 Order
The meeting of United Aircraft Engineering and Manufacturing Group has ended, and the heads of various factories and enterprises within the group have left.

In the large conference room, Luo Nianzhong did not move and just sat in his main seat.

And on the left hand side, there is another person, he is the CEO of United Aircraft Engineering and Manufacturing Group, Eric Sader.

On the surface, he is the manager appointed by Ivankov Bank, the major shareholder of United Aircraft Engineering and Manufacturing Group, but in fact, this person is of pure Far Eastern descent.

Eric Sader is of Mao descent, but his native place is indeed in Hong Kong Island.

Their family immigrated to Hong Kong Island as early as the last century, and he used to work in the legal department of the Far East Group.

This time he was able to come to United Aviation Engineering and Manufacturing Group and rise to fame overnight. In addition to his own outstanding abilities, his identity as a Maori was a big plus.

“罗先生放心，对于伊尔96-400，我们对外的型号是伊尔96-400-100和伊尔96-400-200，并不是什么国际版和国内版，这只是我们内部的叫法”。

International version, domestic version, Luo Nianzhong doesn't like it when he hears these names.

Why, all the good stuff has to be exported, and we can only use low-end products in China?
Although Damuo is not his own country, Luo Nianzhong feels very uncomfortable.

Fortunately, United Aerospace Engineering and Manufacturing Group was not named that, Eric Saade explained.

However, Luo Nianzhong kept him not for this matter, but to inquire about the order from Rabbit.

In recent years, Rabbit Airlines' business has been booming every year, and corresponding airlines have been established in various places.

Southwest Airlines, Northwest Airlines, Sichuan Airlines, United Airlines, and the three major airlines all made their appearances.

With more airlines, the demand for passenger aircraft is naturally increasing, and United Aircraft Engineering & Manufacturing Group cannot miss this opportunity.

“目前有意购买并已经敲定的有川航和西北航，其中川航购买两架伊尔96-400-100和四架伊尔96-400-200，西北航则是三架伊尔96-400-200”。

100 is the so-called international version, and 200 is the domestic version using the PS90A1 engine designed by Soloviev.

"In addition, Air China and China Eastern Airlines are also interested in our passenger aircraft, but the orders have not yet been confirmed."

After hesitating for a moment, Eric Sader's tone showed a hint of helplessness.

"I think they will not buy from us in the end. Even if they do, they will only buy two or three at most."

In terms of purchasing power, the purchase volume of Air China and China Eastern Airlines is not comparable to that of other airlines such as Sichuan Airlines. Winning them would be a real big order, but Eric Saad knows that it is impossible.

Luo Nianzhong also knows this. In the final analysis, aircraft orders have never been a simple business, but a political struggle.

Business is just business, but business between major countries is never just business.

Since the 90s, the trade structure between Rabbit and the United States has been described as airplanes plus soybeans.

The United States always makes a fuss about the trade imbalance between the two countries, and what the Rabbit does is to purchase from the United States to balance this "trade imbalance".

Another reason is that Rabbit needs airplanes. Whether it is for the sake of flight safety, aircraft replacement, or capacity upgrade, airlines need to purchase new aircraft.

Especially now that Rabbit has joined the WTO, business dealings with other countries have become more frequent, and the current shipping capacity is absolutely far from enough.

Against this backdrop, major airlines are purchasing aircraft to increase capacity.

Although the three major airlines are now divided into different factions, their strength and status are undoubtedly more than one step ahead of other airlines.

As for the other company, China Southern Airlines, it can be said that it is already in Luo's mind. Therefore, the orders from Air China and China Eastern Airlines will basically be out of reach for United Aircraft Engineering & Manufacturing Group.

“Try your best, even if you can sell one more it’s good.

Moreover, our conditions are better and the prices are cheaper, so there is no need to make a conclusion so early.

But you did remind me that it is safest to eat the meat in the pot as soon as possible, because who knows if a robber might suddenly come in.

I will have someone urge China Southern Airlines to finalize the contract as soon as possible."

Luo Nianzhong was talking about China Southern Airlines, and China Southern Airlines was also talking about this matter.

Guangzhou, Guangdong Province, is the headquarters of China Southern Airlines.

China Southern Airlines was founded in 1991, but its predecessor can be traced back to 1950.

At that time, it was called the Guangzhou Office of the Civil Aviation Administration of the Military Commission. Later, in 1951, the Guangzhou Administration of Civil Aviation was officially established, responsible for air passenger and cargo sales in the five provinces of Central and South China.

"China Southern Airlines' aircraft must be the United Aircraft Engineering and Manufacturing Group's IL-96-400, and can only be the IL-96-400."

In 1990, China Southern Airlines and Hong Kong's Asia Pacific Airlines jointly established Guangdong Aircraft Maintenance Co., Ltd.

At the end of the same year, the two sides once again deepened their cooperation. Asia Pacific Airlines began to train a variety of talents for China Southern Airlines, including modern flight attendants, maintenance personnel, ground staff and pilots, allowing China Southern Airlines to successfully integrate with the world's aviation services.

In 1992, the second year after China Southern Airlines was founded, Air Asia Hong Kong and Asia Investment completed capital injection negotiations, and China Southern Airlines transferred 1.13% of its shares to the two institutions for US$20 million.

With the support of the Far Eastern Group, China Southern Airlines has benefited greatly both in terms of business and services.

Now that China Southern Airlines is preparing to go public on the Hong Kong stock market, Fengwu Securities naturally becomes the underwriter.

It can be said that South Korea and the Far East are too deeply tied together. With this relationship, the order for 21 passenger aircraft that China Southern Airlines is preparing to purchase is unlikely to go to Boeing and Airbus.

"I know that, but that's not what I came here to tell you today."

"Ok?"

As the head of China Southern Airlines, Chen Kaijun thought that the reason why someone came from above was because China Southern Airlines did not give Boeing a chance and the United States put pressure on it.

"We suggest that China Southern Airlines purchase 15 more Il-96s from United Airlines after its listing. Of course, this is just a suggestion."

"That's impossible" sounds nice, it's a suggestion, but it also means that the person doesn't want to take the blame.

"China Southern Airlines has only so many routes. Adding 21 Il-96s has already reached saturation. Adding 15 more will drag down the airline's finances."

Buying 15 aircraft does not mean that there will be no expenses if they are not used. The maintenance cost is an astronomical figure every year.

If it were any other unit, the superiors would give you advice and ask you to execute it. But China Southern Airlines is different. It has Asia Pacific Airlines and Asia Capital, and Chen Kaijun is a general with great power. He is not subject to orders from the emperor.

"Old Chen, the Il-96 is cheaper than the Boeing. The same number of aircraft will save you a lot of money.

You will be listed next year, and with Fengwu Securities backing you up, China Southern Airlines' stock price is very promising."

The other party talked for a long time, and even after saying that he had done it, Chen Kaijun remained unmoved. The man had no choice but to compromise and lean back in his chair.

"Come on, I know that you, Old Chen, are the kind of person who won't show up until you see the rabbit. Tell me your conditions."

"Then tell me why you do this." According to Chen Kaijun's understanding, this time domestic airlines collectively purchased aircraft, but the main ones were the three major airlines.

Although Sichuan Airlines also purchases long-range aircraft such as the Il-96-400 and Boeing 777, they are a minority after all, and most of them are regional aircraft.

But the three major airlines are different. Almost all the aircraft purchased this time are long-haul aircraft, for the purpose of interstate routes.

Nowadays, all overseas routes for Rabbit are in Asia. There is no direct route to Europe and America. If you want to fly to either side, you need Hong Kong Island and island countries as a transfer.

After joining the WTO, it is imperative for China to open intercontinental routes, which is why the three major airlines all purchased large quantities of aircraft.

Whether it is Boeing or Airbus, the order must be given because it is an exchange.

The Luo family certainly had to be given face, so the equal division of the orders of the three major airlines among the three parties was basically tacitly agreed upon by the higher-ups and known to the lower-ups.

China Southern Airlines' 21 long-haul aircraft are less than Air China's 22, but more than China Eastern Airlines' 17. Now they are planning to add 15 more. This is impossible without any explanation.

"There's nothing to hide. You'll know sooner or later."

When he said this, the other party showed a look of joy, as if pie had fallen from the sky.

"United Airlines has promised that subcontracting will not be less than 35%."

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"Is this true?" Chen Kaijun exclaimed. "No wonder, this may enable many domestic industries to complete technological upgrades, right?"

Aviation subcontracting, that is, compensation trade quota.

According to the unspoken rules of the aviation industry, the exporter of aircraft and engine products must subcontract production to the importing market for at least 10% of the parts subcontracting market share.

In other words, you can buy my products, but 10% of the components must be produced and purchased domestically.

The technology is not up to standard? You need to provide us with solutions, such as providing us with technology.

This is also the reason why countries have to consider Boeing and Airbus when purchasing aircraft. You know, there are many aircraft manufacturers, but in the end only two or three of them survive well.

Moreover, this proportion has been increasing in recent years, and some have even exceeded 20%.

This is a technological upgrade for many countries and can also promote the market economy.

For example, this time Boeing's condition was to subcontract 17%, and Airbus' was 15%. Unexpectedly, United Airlines reached 35% in one go.

This is an unimaginable concession, because with the current domestic technology level, there is no ability to take over this 35% subcontracted production.

Since United Airlines has proposed this, it means that they will help some domestic factories upgrade their technology so that the parts they produce can meet world-class standards.

In other words, this means that Rabbit can produce 35% of a large aircraft in one go. No wonder the higher-ups are so excited.

The domestic aviation industry is just in its infancy, and there will definitely be a large number of orders in the future.

As long as we can digest these technologies, we will have the capital to negotiate terms with Boeing and Airbus in the future.

Relying on low-cost labor, let alone increasing the subcontracting ratio, it is not impossible to reach a strategic cooperation with the two companies and become their supplier.

Now that United Airlines has offered such good conditions, China Southern Airlines' existing orders alone are not enough. It is obvious that United Airlines wants to take over the business of at least one of Air China and China Eastern Airlines.

But now it seems that South Korea will bear all the responsibilities.

"Not only to Europe, but also to North America, China Southern Airlines must be the first to open routes, and the same applies to South America and Africa in the future."

Now that he knew the situation, Chen Kaijun would definitely ask for a high price.

You want money? You are responsible for your own profits and losses. Who will give you money?

Besides, China Southern Airlines is not too short of money. First of all, banks are willing to provide low-interest loans to China Southern Airlines, and secondly, South Korea has the support of a strong company.

Far Eastern capital is very optimistic about China Southern Airlines and is willing to provide large amounts of financial support at any time.

Need policies? If there are any, they will be equally distributed.

You may get some policies today, but the other two major airlines will have them in a few days. It’s meaningless.

Therefore, Chen Kaijun wants exposure, fame, and brand effect.

People will only remember the first one. When China Southern Airlines opened the first route to Europe and the first route to the United States, they subtly became the best airline in the country.

Moreover, this will produce many invisible benefits. For example, Europeans and Americans will settle in Guangzhou, making Guangzhou more attractive for investment. Don’t you, the government, remember my kindness?
"Old Chen, you really opened your mouth wide."

Everyone knows the significance of the first route, and the three major airlines have argued about this issue many times before.

Especially in Europe and the United States, even if each company has one route, they still have nothing. Now China Southern Airlines wants to take it all for itself.

This is not the most important thing. The key is that if this commitment is made, the other two major airlines will have to act according to the wishes of China Southern Airlines, and a lot of preparatory work will become useless.

For example, if China Southern Airlines focuses its business on the European market first and does not open North American routes, then the preparations made by the other two major airlines for the opening of North American routes will be postponed.

China Southern Airlines can completely stabilize the European market first and then plan for other markets. This commitment has extraordinary strategic value.

"Please also be considerate of China Southern Airlines. We can't just sit there and collect dust with 15 extra long-distance passenger planes. Everything costs money, and it's difficult for us too."

"We will consider this matter." The other party didn't want to stay for a moment, it was really a headache.

As for Chen Kaijun, he is just taking advantage of the situation.

"Leader, let's eat before we leave. There are steamed dumplings in the cafeteria tonight, and the fillings made by our cafeteria chef are unparalleled."

In response to Chen Kaijun's enthusiastic shouting at the door of his office, people on the floor popped their heads out to watch, wondering what was going on. This usually serious and stern chairman seemed different.

"What are you all just looking at? You have nothing to do."

Even though he was roaring with passion, the smile on his face was as bright as the sun and never faded in the slightest.

Gazing at the young, beautiful and elegant secretary in front of him, Chen Kaijun gently tapped the other's desk in a gentle yet dignified manner.

"Notice that there will be a meeting tonight. Leaders of all departments must attend. Anyone who dares to ask for leave shall resign voluntarily."

Plans cannot keep up with changes. Now that such a once-in-a-lifetime opportunity has arrived, all previous arrangements must be started over again.

Chen Kaijun decided to seize this rare opportunity and go all out to enhance the brand influence of China Southern Airlines, not only to stand out in the domestic aviation industry, but also to establish its position as the country's number one airline, lead the industry trend and set a benchmark.

He knows very well that this is not only a brand promotion campaign, but also a key step for China Southern Airlines to move towards the future and create a glorious chapter.

(End of this chapter)