Legendary Captain

Chapter 248 Enjoying a life of ease as a kept man

"What did you say? The insurance company wants to terminate the contract, are you sure?" When Wen Jingshu heard the news reported by Lu Xinyu, she was completely stunned: "Do you know what you're saying?"

Lu Xinyu was also speechless: "Chairman, I definitely know what I'm talking about! When I first got the news from my assistant, I couldn't believe it either, but I later confirmed that the news is true and credible."

"Coco signed a contract covering the entire group's aviation industry. If the insurance company breaches the contract, the penalty will be substantial. Why would the insurance company do this?" Wen Jingshu couldn't understand why the insurance company would forcibly terminate the insurance contract.

It's important to know that when this insurance company initially signed the contract, it was with Wens Group, not Chimelong Airlines. This means that the insurance company's policy covers Chimelong Airlines, Chimelong Business Jet, Chimelong Airlines, and a cargo airline, including aircraft hull insurance and third-party liability insurance.

This insurance policy is a very large and substantial one. If it is breached, the entire contract will be lost. There is no possibility that the insurance company will breach the contract with Xingyou Airlines alone.

The insurance policy involves an extremely large sum of money, which undoubtedly means that the penalty for breach of contract will also be astronomical. This is not hard to understand; insurance companies are so shrewd, they couldn't possibly be unaware of this.

"I have spoken with the insurance company's representative. They are determined to terminate the insurance contract. They will send someone to the group later to discuss the issue of liquidated damages."

"They're determined to terminate the contract." This was the first time Wen Jingshu had encountered something like this. "Are there any alternative insurance companies in China?"

"There are only three insurance companies in China that offer insurance for airplanes. The other two have a bad reputation and often make things difficult when it comes to claims. The one we are currently working with is relatively fair."

"Well, so there's no other way out then." Wen Jingshu wasn't very familiar with this kind of property insurance for airplanes, so she asked, "If there's no relevant insurance, will it have a significant impact on the company's operations?"

Lu Xinyu thought for a moment: "The direct impact isn't too big, but without insurance, there's no safety net, so the pressure will be quite significant."

The price range for a 737 is between 400 million and 600 million, with fluctuations depending on the model. But no matter how much it fluctuates, it's at least 400 million. If the aircraft experiences a major emergency and suffers severe damage, tens or even hundreds of millions could be lost. In more serious cases, if the aircraft is reduced to scrap metal, that would be a huge financial blow.

This only covers the damage to the aircraft itself in the event of an emergency. What if something were to happen to any of the passengers? Wouldn't that mean even more financial losses?

The combined effect means that for a small airline, a major emergency could bankrupt the company. Even for a medium-sized airline like Starliner, it would be severely damaged, if not wiped out.

It's important to understand that Star Travel's annual profit is only in the tens of millions, never exceeding one hundred million. A major emergency, if left to Star Travel alone, could wipe out its entire fortunes overnight.

Therefore, almost all airlines insure their aircraft, the most common of which are hull insurance and third-party liability insurance.

The aircraft hull insurance covers accidental loss or damage to the insured aircraft and its accessories caused by any reason during flight or taxiing or on the ground. It also covers the costs of dismantling, reassembling and removing the wreckage of the aircraft caused by an accident.

Third-party liability insurance for aircraft covers the insured's financial liability for compensation when a third party suffers personal injury or property damage due to flight or falling objects from the aircraft while the insured is using the aircraft.

Once an aircraft is insured, the insurance company will be responsible for compensation when the insured aircraft is damaged due to natural disasters or accidents, resulting in personal injury or property damage to third parties or passengers on board.

Even if the compensation amount cannot fully make up for the airline's losses, it can greatly reduce the airline's "bleeding".

However, if an airline cannot insure its own aircraft, then the days ahead will be filled with anxiety, and a single misstep could cause years of hard work to go to waste.

Take, for example, the compensation that Star Travel Airlines bore in the previous Kunyang River emergency landing incident, which amounted to more than 80 million yuan. Of this, more than 50 million yuan came from the insurance company, more than 20 million yuan was subsidized by the group, and the remainder was paid out of Star Travel Airlines' own pocket.

While over ten million is a considerable sum, it's still manageable. Without the insurance company's generous donation, the previous emergency landing on the Kunyang River alone would have been enough to severely impact Star Cruises.

Of course, under normal circumstances, if an insurance company dares to launch this type of insurance, it must be able to make money. However, the current situation seems to be abnormal. The insurance company is willing to bear huge penalties for breach of contract in order to terminate the insurance contract with Wens Group, which shows how much of a money-loser Xingyou Airlines is in the eyes of the insurance company.

Nowadays, at least domestic airlines provide insurance for their planes. As far as Lu Xinyu knows, he has never heard of an airline that does not provide insurance for its planes.

Because even disregarding serious emergencies causing aircraft damage, minor incidents can still pose a threat to the aircraft. In some cases, these minor damages are also covered by compensation.

As we all know, aircraft parts are ridiculously expensive, and by accumulating small savings, we can save a lot of money.

Without insurance, the airline would be under immense pressure. Of course, if nothing goes wrong, they can save a considerable amount on insurance premiums. But if any problems arise, they'll have to bleed money dry.

In many cases, aircraft emergencies are beyond the control of airlines. Rather than living in fear, most airlines would rather spend money to ensure safety and keep the risks within a relatively stable range.

Since the widespread adoption of various customized insurance products for aircraft, such as hull insurance, this has become a standard feature for a normal airline. However, it seems that the airlines under the Wens Group are becoming "abnormal".

The insurance industry is a very complex and murky field, and the Wen family has no real connections in it. Besides, insurance companies are run by shrewd people who never do business at a loss. Even if the Wen family knows some people in the insurance industry, they can't let others make money at a loss!

"Is it because of Star Travel Airlines?" Wen Jingshu said helplessly.

At this point, Lu Xinyu blushed: "That should be it. Recently, our company has had two major incidents. The insurance company must be losing a lot of money. The only reason for this is Xingyou."

"By the way, the volcanic ash incident at Chimelong also resulted in the insurance company paying out a lot of money," Lu Xinyu added, sounding somewhat like he was trying to shift the blame.

"The Chimelong volcanic ash incident? Right, I almost forgot about it."

In the Chimelong volcanic ash incident, Xu Xian "acted bravely" by taking the place of the captain who was incapacitated by inhaling volcanic ash, marking the first major emergency Xu Xian had ever experienced. However, because the co-pilot on duty was the son of the second-in-command of Chimelong Airlines, the man harbored malicious intentions to steal the credit, so Xu Xian had to deal with him and temporarily hide his own contribution.

However, regardless of who deserves credit for the Chimelong volcanic ash incident, the losses were enormous. Both engines ingested excessive amounts of volcanic ash, which contained a large amount of debris, causing almost irreversible damage to the engine core. Subsequent assessments determined that both engines were essentially beyond repair.

Not only were the aircraft's engines destroyed, but the fuselage also suffered enormous damage. Volcanic ash scraped the fuselage like sandpaper, grinding away almost all the paint and exposing the underlying metal. Some protruding parts were worn down to below critical strength; even without cracks, they were no longer usable.

In the Chimelong volcanic ash incident, that plane was practically totaled.

Following the Chimelong volcanic ash incident, the insurance company covered a significant portion of the losses. Furthermore, the incident generated considerable public attention, indirectly leading to a substantial increase in Chimelong's performance during that period. Therefore, overall, Chimelong Airlines itself did not suffer significant losses in the Chimelong volcanic ash incident. The biggest loser was actually the insurance company.

If it were just this one time, the insurance company might not have thought much of it. However, not long after, there was the Kunyang River emergency landing incident. After that compensation claim, the insurance company's mindset changed slightly. But when the Xingyou 6333 came out this time, the insurance company completely collapsed.

The saying goes, "Things don't happen more than three times," and the insurance company truly never expected that such a small company like Wens Group would have two hidden gems: Star Travel Airlines and Chimelong Airlines. In less than two years, the insurance company has already lost a total of 180 million. Even though insurance companies are highly profitable, they can't withstand this kind of volatility.

Therefore, it's better to suffer a short pain than a long one. Just pay the penalty for breach of contract and cut your losses once. You'll be much more comfortable with it later.

There is a probability of special events occurring in civil aviation, but Star Airlines and Chimelong Airlines have clearly stopped following this probability, which makes insurance companies very uneasy.

What is the reason?

"Chairman, it seems that Xu Xian was present in all three of these incidents." Lu Xinyu seemed to have discovered some commonalities; Xu Xian was present in all three incidents.

Wen Jingshu's face darkened, unwilling to continue this somewhat mystical topic: "Well... you should go back to Dianyun and communicate with the insurance company to see if there's any room for negotiation. I'll look for alternatives. From what you've said, it seems that not having airplane insurance can be quite stressful."

Lu Xinyu felt genuinely pressured about this task: "Chairman, changing the insurance company's mind will be quite difficult!"

"I know, just do your best," Wen Jingshu said. "By the way, the bureau's investigation has concluded. Three days from now, you can approve any media interview requests at your discretion. If there are any uncertainties, report them to the group for evaluation."

Previously, the authorities had specifically instructed Wen Jingshu not to accept any interviews before the investigation was completed. Now that the investigation is finished, and the authorities have roughly explained to Wen Jingshu the nature of the Star Travel 6333 incident, which is a case that can be publicized, she can accept interviews appropriately.

"Chairman, our company recently received an interview request from Tianyan Magazine. It seems to be an interview conducted with the standards of an annual cover story." Although Wen's Group tried its best to cover up the Xingyou 6333 incident, the truth eventually came out. Recently, many media outlets have submitted interview requests to Xingyou Airlines, among which the request from Tianyan Magazine is the one that Lu Xinyu is most concerned about.

Since its inception, Star Travel Aviation has never been interviewed by Sky Eye Magazine, which is a great honor in the civil aviation industry.

At this moment, Lu Xinyu was actually a little jealous of Xu Xian. If he had this honor, his life would be worthwhile.

"Cover Person of the Year? Isn't the end of the year over? It's already February!" Wen Jingshu knew a thing or two about this well-known official magazine in the civil aviation industry.

"It seems like this is a make-up for last year's cover," Lu Xinyu said sourly. Xu Xian not only enjoyed the honor of being the cover star of the year, but Tianyan Magazine also specially made up for it. Who else has such a big face?

Wen Jingshu's expression turned serious: "In that case, you must take good care of the Tianyan Magazine interview team. If you don't have enough manpower, you can borrow some from the group's concierge department."

Not to mention that Star Travel Airlines had never accepted Sky Eye Magazine before, even Chimelong Airlines had only accepted it twice, so it cannot be taken lightly.

"Manager Wang, can't you reconsider? It's such a waste to terminate such a large insurance contract like this!" In Lu Xinyu's office at Xingyou Aviation Base, Lu Xinyu was almost ready to kneel down before Manager Wang of the insurance company.

Manager Wang's face fell: "Mr. Lu, do you know that in less than two years, our company has covered a deficit of 180 million yuan for you? 180 million yuan! Do you know what that means? Still feeling regretful? If this continues, our company might be dragged down by this contract."

"But you'll have to pay a penalty for breach of contract, and it'll be quite a lot."

Manager Wang snorted: "If we breach the contract this time, it'll be like we've worked for nothing for the past two years. It's better than guarding a bottomless pit."

"But right now, your company is the only reliable provider of suitable flight insurance in China. If you abandon us, where are we supposed to find another company?" Lu Xinyu said anxiously. "I'm begging you, Manager Wang, can you give us a way out?"

"Mr. Lu, you have to give us a way out!" Manager Wang suddenly lowered his voice: "How about this, we sign a supplementary agreement, we'll only terminate our contract with Xingyou Airlines, that way the rest of your group's airlines won't be affected, what do you say?"

Star Travel is currently a ticking time bomb, and insurance companies are really hesitant to take the plunge. Actually, the insurance companies initially wanted to exclude Chimelong Airlines as well. However, they realized that would be going too far, so they opted to exclude Star Travel as a compromise.

Lu Xinyu's face turned green: "Good heavens, you guys got all the benefits, you think you're so great?"

This practice by insurance companies is a clear indication of their unwillingness to take any risk. While it's human nature to seek profit and avoid harm, and it's reasonable for businessmen to prioritize profit, this kind of greed is truly unsightly.

Manager Wang was a little embarrassed by Lu Xinyu's words. He coughed a few times to ease the awkwardness: "I've reviewed the files for three emergency cases, and I've also heard some rumors recently. Is it true that all three emergency cases involved a pilot named Xu Xian from your company?"

"Uh, what's wrong?"

"How about we make a deal?" Manager Wang winked at Lu Xinyu: "No matter what methods you use, just get rid of that Xu Xian guy, don't let him get away with it, okay? Although we're materialists, when it comes to making money, we still need to be a little bit superstitious."

"You used tricks to get rid of Xu Xian?" Lu Xinyu asked, squinting.

Manager Wang nodded repeatedly: "That's right, he's just a pilot. You're already the deputy general manager of the flight department. If you make things difficult for him, make him stop flying. It'll be good for all of us."

"That won't be good for me," Lu Xinyu sneered. "Trying to outsmart him, I'm telling you, will only end up hurting myself."

"What do you mean?"

Lu Xinyu raised an eyebrow, shoved Manager Wang on the shoulder, clenched his fists, pressed them together, and bent his thumbs to form a gesture that represents lovers: "He and our group's chairman are like this. Give me a thousand lives, and if I dare to play tricks on him, he'll definitely ruin me."

"Wow!" Manager Wang was utterly dumbfounded by this huge business gossip. "Your Chairman Wen has this kind of taste? I didn't know! But with your chairman as your backer, why bother being a pilot? Can't he just happily live off his wife?"

Lu Xinyu glanced at Manager Wang with disdain: "If you want to know, go ask our chairman!"

Manager Wang clicked his tongue: "Forget it, since we're talking about terminating the contract anyway, why don't we tell your chairman's little boyfriend to stop flying away and choose someone else instead?"

They had been cooperating with the Wen Group for a long time, and there had never been anything so abnormal before. Ever since Xu Xian came out, three major events have happened in a row, draining them dry. They couldn't take it anymore.

It's best to get rid of Xu Xian, this plague god.

Just then, Xu Xian appeared at the office door: "Who should I tell to stop flying?"

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(End of this chapter)