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Chapter 553 Cathay Pacific's Hope

Sitting in the spacious and bright office, through the clear and unobstructed floor-to-ceiling glass walls, Wang Yaocheng can see Victoria Peak with his head slightly lowered, overlooking the entire prosperous city of Hong Kong and Kowloon Island, and has a sense of having the world under his control.

The office is located on the 130th floor of the Royal Center Building, 680 meters above the ground, far exceeding the height of Victoria Peak, which is 553 meters.

Look around

In the distance, Lantau Island is vast and green, stretching into the distance to the end of the sky.

The azure Victoria Bay surrounds the bustling city with tall buildings. People and cars on the road are like ants. The giant ships on the sea are as big as toys. White clouds are floating under your feet.

How can this feeling and scene not make people burst with pride?

The Royal Center Building, the tallest building in the world, has a total of 162 floors. All buildings on the 130th floor and below are reinforced concrete structures, and all buildings above 130 floors are steel structures.

This design is to reduce the weight of the superstructure and increase the stability of this unprecedented skyscraper.

If you don't have a fear of heights, there are only two words that can describe working here: open and bright.

Indeed, there is no realm more open than this.

in the bright hall

Han Jianfei, the new Secretariat Director of the Royal Family Fund, walked over briskly, holding the documents that needed to be reported in his hand. He came to the door of the consortium chairman's office, took a deep breath and pushed the door open.

This daily morning reporting work used to be done personally by the former Secretariat Director Zhao Feng.

Now that Zhao Feng has been promoted to the position of secretary-general of the consortium, he has a stable position as the general manager of the consortium. His office is on the 129th floor below. This task of meeting the boss and reporting every day has been transferred to the new secretary-general Han Jianfei. For him, this is

It's an opportunity!

"Chairman, good morning."

"Haha... Jian Fei is here! Secretary Zhao's work will be handed over to you from now on. I'm afraid you will have to work harder."

"Chairman, I still need to learn more, but I will definitely do this job conscientiously and never let down your earnest expectations in entrusting me with this important task."

"Okay, come and sit. Would you like a cup of tea?"

"Thank you, Chairman. Please don't bother me. I had tea before I came here. Do you think we can start reporting?"

Facing Wang Yaocheng's polite greeting, Han Jianfei politely declined. He didn't come here just to drink tea and chat with his boss, but to report on his work.

The boss really has no airs, but that doesn't mean his subordinates can have no sense of propriety. I don't understand this at all, so I'd better not do this important job.

"Oh, okay."

Since Han Jianfei was more reserved, Wang Yaocheng didn't need to say hello anymore. He walked to the sofa and sat down to listen to the consortium's latest situation briefing.

these days

After the CEO Summit and the inauguration ceremony of the headquarters building in the second fiscal quarter of 2004, the CEOs of the consortium companies left Hong Kong and went to other parts of the world, leaving very few behind.

Marvel Animation President Pan Shishanyi and Vice President Huang Baiming visited Mindanao Island in the Philippines to attend the opening ceremony of the A-level commercial blockbuster "Journey of Misery" produced by Marvel Entertainment Films.

at the same time,

A ship from the United States delivered more than 50 large RVs to the location in Zamboanga City, Mindanao, and will provide complete logistical services for the main cast and crew.

According to the film's schedule, location shooting will be completed at the end of August, and then it will return to the United States for post-production.

Vice Chairman of the consortium, Huo Jiaguang, plans to report on the early contacts with American aviation companies at 10 a.m.;

These include;

American Airlines, the seventh largest airline, filed for bankruptcy protection twice in 2002 and 2004. Delta Air Lines, the third largest airline, and Northwest Airlines, the fourth largest airline, filed for bankruptcy protection in 2004, as well as some other airlines.

In recent years, North American airlines have been having a particularly difficult time.

After deducting price inflation factors, the average air ticket price in 2004 dropped by 20% compared to 2000. Vicious competition in the US aviation industry once again highlighted serious consequences.

Under this circumstance, Cathay Pacific feels that the time is ripe for mergers and acquisitions, and is ready to take the final step of expansion and acquire one or two American airlines to improve the most critical market for the company's global layout - the North American aviation market.

According to the meeting schedule

2.00pm

Vice Chairman of the consortium Dong Mingzhu and President of Gli Group Zhu Jianghong will come to report on the global development strategy of Huanghe Technology Group and Gli Enterprises.

4.30pm

Met with the Chinese Olympic Organizing Committee delegation to Hong Kong and hosted a banquet for distinguished guests at the Peninsula Hotel.

After the situation briefing, Han Jianfei asked respectfully;

"Chairman, do you think there is anything that needs to be changed in the schedule?"

"Okay, that's it."

"Understood, the Secretariat will arrange it accordingly."

Wang Yaocheng nodded and said nothing, watching Han Jianfei leave, sighing slightly in his heart;

The development of consortium enterprises has reached a bottleneck. Each one wants to embark on the road of leapfrog development. Cross-border mergers and acquisitions are the best way to improve the global layout. No one wants to fall behind.

This is just like Global Communications Company and the Hong Kong and Shanghai Hotel Group, which have stood out from the array of consortium companies and become influential leading companies in the world.

From the perspective of professional managers and enterprise development, this is understandable.

The eight vice-chairmen who have just been appointed by the Royal Family Fund may all have to advocate for their respective companies, which will cause trouble.

The development problem has returned to its original point, and Wang Yaocheng must face it. What makes him feel numb is that he may have to deal with the antitrust agency of the US Department of Justice again.

This is not good news.

In particular, cross-border mergers and acquisitions by aviation companies are inherently sensitive due to the aviation safety considerations of various countries, and can easily be targeted by antitrust agencies.

For Cathay Pacific;

Today, the airline ranks first in market share on routes in Asia and Europe, but it only ranks ninth in North America and sixth in South American routes, which has become a weak point in the company's development.

Cathay Pacific is mainly engaged in international cross-state trunk line passenger and cargo transportation, coupled with its sound management, it was named the World's Best Airline in 2003.

When most of the world's aviation industry is losing money, it is really commendable that it can still maintain profitability.

The U.S. aviation market is currently in a state of turmoil.

Since 1985

The U.S. Air Transport Commission was dissolved, the establishment and mergers and acquisitions of U.S. civil aviation companies were liberalized and no longer controlled by the government, and the civil aviation industry gradually entered a state of free competition.

Deregulation has resulted in a significant increase in the number of U.S. airlines, lower fares, and better service and quality guarantees.

However, not long after, serious hidden dangers emerged.

The number of airlines increased dramatically, reaching a maximum of 198 airlines, which led to vicious competition among industries. Most airlines were merged or bankrupted during the competition, and the aviation industry was in turmoil.

In the early 1990s, there were only more than 60 airlines left in the North American market, still struggling on the edge of meager profits and losses.

At this time, the global economy has entered a cycle trough, but the North American aviation industry is still in the process of accelerating expansion, with high costs and large demand for funds.

In addition, the U.S. launched a war against Iraq, which caused the average price of crude oil to rise. Under this circumstance, the survival environment of the U.S. aviation industry is particularly severe.

In the three years from 1990 to 1992, the U.S. aviation industry suffered a total loss of more than 10 billion U.S. dollars. About half of the airline companies went bankrupt or merged, leaving less than 35 airline companies. The market was further concentrated.

After entering 1993, the U.S. economy rebounded from the trough and continued to grow steadily. The demand for air travel increased steadily. The passenger load factor increased from 63.5% in 1993 to 72.4% in 2000, ushering in a six-year profit cycle.

But the good times ended here, and the prosperity of the U.S. aviation industry did not continue.

After the Internet bubble burst in 2000, the U.S. aviation industry once again entered a loss cycle. From 2001 to June 2004, the U.S. aviation industry suffered a total loss of more than 60 billion U.S. dollars, which is a very astonishing figure.

It can be said that the North American aviation industry is now shunned by everyone and is as annoying as stinky shit.

But why does Cathay Pacific want to enter now?

Buffett has a great saying;

I am greedy when others are fearful, and fearful when others are greedy.

There is no market that will always lose money. As the world's most profitable North American aviation market, it has experienced the bloody baptism from the 1980s to the 1990s. The number of airlines has plummeted from nearly 200 to more than 20 today, and it is close to the final oligarch.

monopoly structure.

In the past four years, the U.S. aviation industry has lost $60 billion, and no one in the industry has been spared.

Now that the third, fourth and seventh airlines in the United States are in bankruptcy protection at the same time, it does not mean that other airlines are having an easy time. The top ten airlines have all suffered huge losses.

Every airline company has a share of this $60 billion loss, without exception.

The reason why it can still hold on is nothing more than blood transfusions from the major shareholders behind it, clinging on to hope to survive the darkness before dawn.

After a few years, when the competition becomes clear and the oligopoly pattern of the North American aviation industry is formed, and the four giants tacitly maintain ticket prices strong, there will be no way to enter, and no one will be stupid enough to hand over the fruits of victory to others.

Now is the most difficult time for North American airlines. If Cathay Pacific wants to enter, now is the best time.

As an airline that aspires to become the world's best and largest airline company, Cathay Pacific Airways is destined to fail to grow into the world's largest airline company if it cannot participate in the North American market.

Cathay Pacific has its own unique advantages. It has been named the world's best airline for five consecutive years. It has competitive advantages on Eurasian routes and Atlantic routes. It also has a wide range of mainline flights at major hub airports in Europe and Asia. Its corporate reputation and

The images are all very good.

at the same time

Cathay Pacific is closely linked with HSBC, Carrefour Group, and the Hong Kong and Shanghai Hotels, the world's largest hotel group, and can provide thoughtful and meticulous services that other airlines cannot match.

Relying on the strong strength of the consortium, to put it bluntly, Cathay Pacific suffered a complete loss.

Wang Yaocheng, chairman of the consortium, sees the huge benefits brought about by corporate linkage very clearly. He does not force a certain company to make profits, but pays more attention to the linkage effect.

Cathay Pacific can bring a large number of high-quality, high-income users to a series of companies such as HSBC, Global Communications, Hong Kong and Shanghai Hotels Group, Carrefour Group, etc. Its important role cannot be reflected in financial reports.

It is like a traffic portal for online companies, attracting high-quality users.

Therefore, Wang Yaocheng has always been very concerned about the expansion of Cathay Pacific. Since the acquisition of KLM, he has been paying attention to the North American market and looking for opportunities to get involved.

Now, the time has finally come.

(There is another chapter, which will be uploaded around 6 p.m. I am very sorry for the delay, please note.)


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