Return to Hong Kong Island for a Century

Chapter 428 The Excitement of the McDonnell Douglas President

"And you're even planning to use the King of Air Disasters to pay off your debts. Does anyone still want your planes?" Li Song asked again.

Upon hearing this, McDonnell Douglas's president shook his head and said, "Mr. Li, there is nothing wrong with our plane. The problem is mostly due to negligence by the ground crew."

"So, does your McDonnell Douglas company dare to promise that if the problem is caused by the aircraft itself, you will take full responsibility for the accident?" Li Song asked again.

“There are insurance companies…” President McDonnell Douglas couldn’t guarantee that, so he quickly replied.

"Sorry, I bought the planes for logistics transportation. I'm going to convert these kings of air disasters into cargo planes."

“So this is another expense,” Li Song added.

Actually, this was something Li Songshun did. Converting passenger planes into freighters is a huge market. Civil airliners have a limited service life, so they need to be converted into freighters to continue serving.

Chang'an Aircraft Manufacturing Plant will also carry out this business in the future.

However, the passenger planes manufactured by Chang'an Aircraft Factory will not be converted into cargo planes for at least another twenty years.

Why did Boeing's aircraft sell so well?

One reason is that Boeing became the largest passenger aircraft manufacturer after acquiring McDonnell Douglas.

Moreover, backed by Aramco, it wields enormous influence in both business and politics.

On the other hand, Boeing has a complete process for converting passenger planes into freighters.

Converting a passenger plane into a cargo plane is also a very large expense.

Boeing has a complete and mature industrial chain and mature solutions, so its costs are relatively low.

Of course, there's another reason why Boeing's aircraft are popular.

That is pilot training.

The operation of different Boeing aircraft models is not significantly different.

Pilots and crew members can adapt to the new aircraft in a very short time.

It's important to know that pilots are paid very high salaries, and the longer the training time for pilots and crew members, the higher the costs for the airline.

This is why many airlines continue to buy Boeing aircraft after they have already purchased them.

The main consideration is cost!

If other aircraft are added in the process, then the other pilots will have to fly the new aircraft and undergo retraining.

These expenses add up to a considerable sum.

“Mr. Li, our company also has a complete solution for converting passenger planes into freighters…” McDonnell Douglas’s president quickly said.

"Heh, do you think your costs are lower than those of our Chang'an Aircraft Manufacturing Plant?"

“However, I don’t recommend that you continue negotiating with us now,” Li Song chuckled.

The president of McDonnell Douglas felt a pang of anxiety upon hearing Li Song's last sentence.

The president of McDonnell Douglas has been in Hong Kong Island for several days now.

Initially, the company sent representatives, while others made contact. The performance of Parkson Company convinced McDonnell Douglas that a deal could be reached.

The "Fat Bear" military exercise has a significant impact on the US and the entire Western world.

McDonnell Douglas keenly realized that Aramco's relationship with the East would reach a new level.

That's why the president of McDonnell Douglas met Li Song.

Hearing that Li Song didn't want to talk anymore, the president of McDonnell Douglas asked nervously, "Why? We haven't even discussed the price of the aircraft yet. Our aircraft's price is very attractive!"

"It has nothing to do with McDonnell Douglas!"

"It's related to Boeing!"

"The President must also realize that the relationship between China and the United States is about to usher in a new development!"

"So you think Boeing won't expand into the mainland Chinese market?"

"Won't this lead to America's politicians adding conditions that are favorable to them when negotiating with the East again?" Li Song asked, shaking his head.

After hearing Li Song finish speaking, the president of McDonnell Douglas picked up his teacup and pretended to drink tea, while secretly making plans in his mind.

Then, he tentatively asked, "Mr. Li, are you planning to settle with Boeing?"

"No!" Li Song shook his head.

"Our Chang'an Aircraft Manufacturing Company is now mainly focused on the mainland market."

"Actually, I would love to work for McDonnell Douglas because it is a great company."

"I really like the airplanes your company manufactures!" Li Song gave McDonnell Douglas a little compliment here.

The president of McDonnell Douglas was naturally pleased to hear Li Song say this, but he was still somewhat puzzled: "So it has nothing to do with our negotiations?"

Li Song shook his head: "Of course it's related!"

"Your McDonnell Douglas company's market share in the commercial aircraft market is getting lower and lower, and there are almost no new orders!"

"So do you think Boeing will try to influence American politicians to demand that the East open its commercial airliner market?"

"Although our company's commercial airliner has not yet been finalized, it has already attracted the attention of Boeing."

"Therefore, I think Boeing should increase its efforts in this area."

"Once Amei and Dongfang have agreed on the relevant terms, we will then cooperate!"

"This will force Boeing to spend more on public relations," Li Song stated clearly.

The president of McDonnell Douglas was stunned when he heard this.

This young man is actually setting a trap for Boeing!

According to the young man's plan, there was absolutely no problem.

What made McDonnell Douglas's president even more alarmed was that the Bear Exercise led to another problem: Boeing's prior public relations expenses were almost entirely wasted.

In other words, the broadcasting company is pushing for new aircraft safety management regulations.

It would never pass in the Senate.

Because this also involves another company, namely Airbus in Europe.

Now Aramco needs to unite closely with Europe to deal with the massive bear.

If this proposal triggers trade friction between Europe and Aramco at this time.

This is a disaster for both the US and Europe.

Moreover, relations between the US and certain Eastern countries are likely to improve.

Therefore, it is even less likely that the Senate will pass such a proposal.

In other words, all of Boeing's initial investments in this proposal went down the drain.

The president of McDonnell Douglas was somewhat gloating, but now he heard Li Song say this.

Thinking about all these things surrounding Boeing's public relations efforts.

The president of McDonnell Douglas felt that this was a trap.

Moreover, this trap was set up very cleverly.

The CA201 civil aircraft was virtually unknown before this.

But the aircraft became famous ever since Boeing began pushing for the proposal.

Moreover, it cost Boeing a considerable amount, with stock price fluctuations and a change in management team.

Not only did it cause huge losses to its competitors, but it also made its own product famous.

More importantly, the other party is now trying to sabotage Boeing again. McDonnell Douglas's president strongly agreed with Li Song's analysis; Boeing certainly wouldn't let go of the opportunity to enter the Eastern market.

McDonnell Douglas's president felt that if he were the president of Boeing, he would also bring his company's products into the Eastern market.

Because CA201 is not yet finalized!

Not to mention mass production.

While this aircraft is still in its early stages of development and has not yet entered mass production, this presents a great opportunity for Boeing to enter the markets of certain Eastern countries.

Moreover, once the aircraft begins mass production, it's impossible to say that production will reach a very high level in a short period of time.

Moreover, once Boeing's aircraft enter the Eastern market in large numbers...

Boeing's entire aircraft system will take root and flourish in the East, including pilot training, maintenance, and upkeep!
Moreover, a passenger plane can operate for at least twenty years.

Airlines will also consider the training costs of pilots, as well as the costs of maintaining these personnel and equipment, when making subsequent purchases.

In addition to Aramco's political influence, Boeing can take away a portion of the market as long as it gains a foothold in mainland China.

"Mr. Li!"

"You truly deserve to be called a writer!"

"Your idea is fantastic!" The president of McDonnell Douglas looked at Li Song differently.

The twenty-year-old in front of him was like an old hunter, and Boeing was like a huge prey.

What excited the McDonnell Douglas president even more was that Boeing would not let this opportunity slip by and would certainly spend a huge amount of money to push forward the relevant negotiations!
And what will it be in the end?
Finally, McDonnell Douglas aircraft entered the Eastern market.

The president of McDonnell Douglas is now eager to see the results.

Of course, it was also out of fear of Li Song.

Of course, the president of McDonnell Douglas was unsure whether this idea came from Li Song or someone behind Li Song.

But in any case, this is a very good thing for McDonnell Douglas.

“Then we’ll have further negotiations later!” The president of McDonnell Douglas didn’t think Li Song was lying about buying DC10.

If relations between the US and the East warm up, then both sides will definitely open up trade markets to each other.

The subsequent impact of buying DC-10 is much smaller than that of Boeing.

"Of course, but I hope that what we say today will be limited to a very small scope," Li Song chuckled.

"No problem at all!"

"We can provide technology licensing for free at that time."

"Of course, it doesn't involve the engine!"

"In addition, we have some repair equipment that we can also sell at a low price!" The president of McDonnell Douglas took a big sip of tea, looking very pleased.

“Of course!” Li Song nodded.

Then the president of McDonnell Douglas couldn't wait to leave Hong Kong Island.

There's no way to negotiate anymore; if we do, others will find out.

For McDonnell Douglas, Boeing was the biggest competitor.

McDonnell Douglas is happy to be able to collude with outsiders to sabotage its competitors.

After the McDonnell Douglas president left, Tian Jiahui asked, "Boss, will McDonnell Douglas join forces with Boeing?"

"Will not!"

“Although they are all American companies, capitalists value profit!” Li Song shook his head.

"Moreover, McDonnell Douglas's commercial airliners are just one of its businesses; it also has F-15 and F-18 fighter jets!" Li Song said.

In fact, after Boeing acquired McDonnell Douglas in 1997, the U.S. military purchased a large number of these two military aircraft.

He even used his influence to retire the Tomcat fighter jet.

Even decades later, the cost of an F-15EX was $3.8 million.

I wonder how much money Commissioner Smith received this time.

So Boeing is the one that made the biggest profit.

Boeing's acquisition of McDonnell Douglas not only eliminated its last competitor in the commercial airliner market in the United States, but also brought McDonnell Douglas's military aircraft under its control.

How much money has Boeing made from military aircraft since 1997?

Therefore, as long as McDonnell Douglas is not swallowed up by Boeing, Boeing will not be able to become great.

However, some things can only be dealt with one step at a time.

In Li Song's vision, it would be best if McDonnell Douglas could produce another best-selling commercial airliner.

"Uh-huh!"

"Now, BMW dealers in London want to increase their margin requirements. They want at least 1,500 vans and 500 sedans every month." Tian Jiahui stopped talking about the aircraft manufacturing company.

"And then there's Jaguar, and Land Rover!"

"What are the boss's plans next?"

Upon hearing this, Li Song said, "Jaguar is going for the high-end sports car route. I will come up with the design blueprints for a sports car, apply for an international patent first, and then send it to London to launch the sports car according to the process."

"As for Land Rover, it mainly focuses on sporty off-road vehicles and urban SUVs."

"They are the two off-road vehicles from the last exhibition."

"A small portion is produced in London, but the majority is produced in mainland China!"

"In addition, we will establish an off-road vehicle research and development center in London." Li Song had already planned this out.

"We can build the R&D center over there first, but the production plant will have to wait a bit longer!" Li Song decided to adopt a large number of automated robots in the factory in London.

However, automated robots require chips, so they will only be launched after domestic chip production begins.

Li Song wants to use London as a springboard to promote BMW cars worldwide, especially mid-to-high-end cars.

However, the biggest drawback of setting up a factory in London is the high cost of labor.

Therefore, the only option going forward is to adopt a large number of automated devices.

We can just hire a small number of workers then!

Although the factory is located in London, it still relies on the mainland because it needs to import various raw materials from the mainland.

Even automated robots and automated equipment are manufactured in mainland China.

"Hmm!" Tian Jiahui didn't know why the boss wanted the factory to slow down, so he didn't ask unless the boss explained.

"Jaguar and Land Rover have established separate subsidiaries."

"The headquarters will be located in London!"

"However, the CEOs of both companies were dispatched by Parkson."

"The local recruitment is mainly for public relations and similar roles."

"We must send people from headquarters to manage production and finances!" Li Song added.

"These two companies will go public later!" Li Song plans to list these two companies later!
“Okay, I’ll make the arrangements.” Tian Jiahui was already very familiar with setting up subsidiaries.

Parkson is no longer the small company it used to be; it has more than enough talent.

"Thank you for your hard work. In the future, these two companies will give some shares to the senior management team, including the senior management of Parkson." Li Song could not give the shares of Parkson to anyone, but the shares of these subsidiaries as rewards were no problem at all.

(End of this chapter)