Traveling through the sword to engage in military industry.

In the world of Bright Sword, after the establishment of the European Space Agency (JAA), more than 10 European countries began to promote European standard certification for aviation. Since the establishment of JAA, new passenger aircraft flying on the routes of these European countries need to have this certification.

In order to achieve this result, John Bull had to release some of his Airbus shares to Gaul and Prussia, and sell off some aviation parts production. This was the first way to achieve the joint promotion of the European aviation standard by the three powers.

As a result, if Douglas and Boeing's new models want to enter the European market, they will have to accept European standard certification.

The FAA, which had been making things difficult for the Airbus A300, suddenly became normal and began to speed up the certification process. With sufficient data on the Airbus A300, the FAA issued the certification for the Airbus A300!
Prior to this, dozens of A300 and CAC-120 passenger aircraft had been delivered, which greatly reduced the operating costs of airlines with their reliability, low maintenance and low fuel consumption. European aviation giants such as BAE, Lufthansa and Air France tasted the sweetness and placed additional orders to continue purchasing. They also placed more than 300 orders for the long-range Airbus A200L that Airbus is currently improving!

Low operating costs and lower per-seat prices than competitors make European airlines more competitive than their North American counterparts on medium- and short-haul routes of less than 3500 kilometers.

This prompted some disadvantaged airlines in North America to take the lead in extending an olive branch to Airbus. Northwest Airlines and Allegheny Airlines were the first to place orders, ordering a total of 50 Airbus A300s!

For a time, Airbus A300 began to become the first choice for regional airlines!
However, the booming market not only brought happiness to Rolls-Royce President Robert, but also the trouble of being constantly urged to deliver by airlines. With both pain and happiness, President Robert had to go to Yandu and start discussing the issue of capacity expansion with Dongda's partners.

Yandu Aviation Industry VIP conference room.

"Chen, we must expand our production capacity." President Robert said straight to the point, "Our Airbus A300 orders alone have exceeded more than 120, and the CAC-2000 orders have exceeded 100. However, our current production capacity is only about aircraft per year, which is simply not enough to meet market demand. It's time for us to significantly expand our production capacity."

It is unforgivable for President Robert to have so many orders but fail to cash them in.

The current situation is extremely good. If we fail to deliver and customers cannot wait to switch to competitors, President Robert will not even have time to cry.

"Yes, Robert, we are also discussing this issue. However, how much capacity should we expand requires coordination between both parties." General Manager Chen Hanyuan interjected. He had never expected this promising situation before. Although Ren Zhong had promised that it would work, people like Chen Hanyuan who had little idea about passenger aircraft sales would not understand these business matters. He was just faithfully executing Ren Zhong's layout.

Who would have thought that such a huge market would be created in just a few years.

It has become particularly popular in overseas markets; it is now the main passenger aircraft on the front line!
"According to our estimates, our orders will increase in the next few years. There is basically no doubt that the sales volume of Airbus A300/CAC-120 aircraft will exceed 3000. If we want to achieve the delivery of these aircraft within ten years, we need to reach an annual output of at least 300 aircraft, and we may even have to consider reaching a production capacity of 400 aircraft." President Robert proposed a rather scary number, increasing the production capacity by 4 times at once!
This is no small number, as it means that the current passenger aircraft production lines will have to be expanded from one production line for each company to four!
Moreover, it is not just the whole aircraft production that needs to expand production capacity. Many upstream supporting parts companies must also expand accordingly. In particular, now that all of these aircraft engines and avionics equipment are exclusively supplied by Dongda's supporting factories, this means that Dongda needs to expand four times if it does not consider releasing all of this production capacity.

For Todai, this is a huge number for the relevant investment!

Don’t think that the annual production capacity of 400 passenger aircraft is too large. In the main world, Airbus’ annual production has exceeded 500 aircraft per year!
After these production lines are built, they will not only produce the Airbus A300 and its derivative models, but will also be able to produce the A300L and its derivatives, as well as new large passenger aircraft such as the A320 and A330 in the future!
"Robert, we will conduct an in-depth discussion internally on your suggestion. As partners, we will fully consider our overall interests." Chen Hanyuan couldn't make a decision on such a big thing, so he waited for a while.

"This is indeed a major decision, Chen. I will wait for the results of your discussion. No matter what, we must reach a conclusion this time." Robert also knew that the decision on the part of Dongda was not decided by Chen Hanyuan alone. At Dongda, Chen Hanyuan did not even have as much power as him as the president.

Yandu.

In an ancient conference room, important personnel such as Ye Staff Officer and Ren Zhong were present, and more than a dozen important figures were listening to Chen Hanyuan's report. Here, Chen Hanyuan, the president, was actually the lowest in rank.

"This is the situation, leaders. Now Mr. Robert, the president of Rolls-Royce and Airbus, is waiting for our decision." Chen Hanyuan reported the matter briefly.

The heads of various ministries who were holding the report listened and looked through it, and they could hardly believe what they saw!
Will Airbus A3000 sell more than 300 units in the future?!
You have to know that this is an expensive thing that costs more than 500 million US dollars. What does 3000 of them mean? 150 billion US dollars, which is equivalent to 450 billion of the University of Tokyo!

You have to know that the GDP of Southeast University has only just exceeded 3000 billion!

The sales of this aviation product are horrible.

After reading the report, everyone couldn't help but look at Ren Zhong.

They all knew who had brought the aviation industry of the University of Tokyo to its current level.

"Dean Ren, it seems that everyone is waiting for your opinion. We really don't understand this and can only do some hard work. What do you think we should do? Should we greatly expand our production capacity now?" Staff Officer Ye said to Ren Zhong with a smile. In formal occasions, Staff Officer Ye was still very respectful to Ren Zhong and was not as casual as in private.

"Mr. Ye, our production capacity should have been expanded long ago." Ren Zhong was not polite. He was the one who took the lead in this regard. Otherwise, it would be too late for everyone to find out after they had gone into trouble. "We do need to expand the production capacity of 400 aircraft. We have received this number of orders for just one model. When our CAC-130/140/150 series derivative models come out, sales will be even more popular. From the current level of technological advancement, our aircraft is fully leading in regional aviation." Ren Zhong continued.

"I would not be surprised if our order volume exceeds 5000 in the future, so it is inevitable to improve our delivery capacity. As far as our domestic conditions are concerned, we have all the equipment for a full set of production lines. Only some of the equipment on the production line for aircraft engines is a little worse. But we can ask Rolls-Royce to import some equipment from John Bull or Continental. After all, we have not yet achieved full leadership in machine tools, and some special machine tools are still the most advanced from Continental."

"Overall, the expansion of our production capacity will be a huge boost to our entire aviation industry chain. In this regard, we have to strike a balance. First, we will continue to provide all aircraft engines and avionics, and this principle remains unchanged."

"For other parts, I suggest that we still follow the original agreement requirements. The aircraft will be assembled and sold by the aircraft factory in the market where it is sold, including after-sales. However, for aviation sales in third world countries, we now have to consider regional divisions and avoiding competition."

Although Ren Zhong did not guess that this type of passenger aircraft would become so popular so quickly, he had anticipated the overall situation. After all, Boeing and Airbus already had samples in the main world, and medium- and long-range regional aircraft were the mainstream.

The Airbus A300, a low-operating-cost passenger aircraft suitable for intracontinental routes, is a great product for airlines to expand their territory. If more airlines buy it, it can also form a herd mentality.

Because on the same route, if the competitor chooses this aircraft and you do not, then your cost advantage will not be able to compete with the competitor. Wouldn't this make you more and more passive?
So after competitors buy such passenger planes, we have to grit our teeth and keep up!
Top European airlines like BAE, Lufthansa and Air France have many overlapping routes, so they cannot avoid competing with each other, so they will discuss using the same aircraft to ensure their own profitability.

However, in most third world countries, domestic routes are dominated by one company, while international routes penetrate each other.

It is obviously unreasonable for Airbus and Dongda Yandu Aviation to compete with each other to take over such a territory.

They should have a tacit understanding and choose the appropriate range to compete with Rogue Eagle’s three major competitors!
"But, President Ren, we want to build so many production lines, and the investment is not a small number. One production line costs almost 20 billion, and we need to build three more production lines, which will cost about 3 billion. Now our total investment in infrastructure is just over 70 billion, and this includes large-scale infrastructure and production facilities such as railways, roads, energy, steel, electronics, chemicals, etc." The head of the ministry in charge of investment and development said stiffly. He was absolutely right. Now the domestic construction wave of Dongda is one after another, and there are too many places that need to be built to achieve national industrialization.

"Frankly speaking, we simply don't have that much money, judging from our infrastructure funding plan. It would be very difficult to even build a production line with this money," the head of another department nearby also complained.

"Yes, President Ren, our Ministry of Aviation Industry is under tremendous pressure to expand capacity. A production capacity of 400 aircraft means that our aviation engine production capacity must reach more than 800 units. If we add the maintenance and replacement of old models, the annual production capacity of aviation engines needs to be more than 900 units. This investment will cost several hundred million yuan, and our Ministry of Aviation Industry cannot afford so much money."

Not only them, the Ministry of Electronics and the Ministry of Machinery Industry also started to complain.

"The money issue is easy to handle." Ren Zhong smiled and said before Staff Officer Ye could speak, "We can issue a wave of aviation bonds to the whole country and even the world. I think we can issue 10 billion 5-year long-term bonds with an interest rate of %. The funds can be used for specific purposes. The infrastructure investment in the aviation industry will solve most of the problems."

"According to our production capacity, we will achieve an output value of 400 aircraft in the future. According to our current division of labor, we will account for more than 6% of the output value obtained from the aviation industry chain each year. In other words, we will get more than 5 billion yuan in revenue from this simple passenger aircraft production aviation industry chain, and the profit will be at least 50 billion yuan. There is no problem in paying 20 million yuan in interest every year, and it will not be a problem to repay the principal in 5 years."

Ren Zhong finished speaking and changed the subject, "Our biggest problem is the shortage of high-level skilled workers in the aviation industry, especially workers in precision equipment processing such as aircraft engine production. We should increase our training efforts in this regard from now on. With our current economic development level, there are quite a few wealthy families in the country. We should be able to issue 10 billion bonds domestically."

"High-level workers cannot be trained overnight. It takes more than five years of dedicated training to become a high-level welder or fitter."

Ren Zhong's words made everyone in the conference room silent.

After all, it’s not that everyone hasn’t thought about this problem, it’s just that people usually don’t want to think about it. If there is a shortcut, these people would like to take it.

"Okay, let me summarize. Now everyone has agreed to expand production capacity. We must expand and implement the current orders of the aviation industry and ensure delivery." said Staff Officer Ye.

"If we don't have money, we can issue aviation bonds, but the problem of personnel is not a small problem. No one has come up with a reasonable and effective plan today. I hope that we can see such creative projects for study at the next meeting."

"We will accelerate the pace of talent cultivation, enhance the depth of the aviation talent pool, and continuously provide a large number of qualified talents for enterprises and research institutions in the aviation industry chain."

"Mr. Chen Hanyuan, go back and tell Robert that we at Dongda have followed this wave of aviation industry expansion and have directly expanded our production capacity to 400 aircraft." Staff Officer Ye concluded, "We must fully grasp this wave of aviation industry development opportunities and resolutely not be afraid to develop ourselves. In terms of the development speed over the past years or so, especially in recent years, we have been moving forward at a rapid pace. We are all responsible for the relevant industrial chain and must broaden our horizons and patterns. We cannot focus on our own small piece of land and ignore the development of our upstream and downstream. This is wrong. We must all have a sense of the overall situation and the overall situation."

Staff Officer Ye took the opportunity to warn everyone, "Our aviation industry has reached a breakthrough opportunity. If we are still timid and afraid to act now, we will become the sinners of the future development of Dongda's aviation industry!"

After the opinions above are unified, Chen Hanyuan can boldly proceed with the following matters. (End of this chapter)