On the morning of the 5th, Li Guangyu listened specifically to Du Yuemei’s investigation of the investment in Pengcheng Airport in the office.
More than a month has passed since the first negotiation at the end of November last year. Du Yuemei also arranged for personnel to carefully investigate the Pengcheng market and had many communications with the Pengcheng government.
The Pengcheng government is still very determined. They designed Pengcheng Airport with a 4E level and initially built it as a 4D level airport. They will expand the airport when needed in the future, and the Pengcheng City government hopes to build Pengcheng Airport into a mainland airport.
An important hub airport for foreign exchanges.
This airport will build a 3,200-meter runway to enable it to take off and land any civil aviation aircraft in the world. In the initial stage, it will build 8 aprons and a 30,000-square-meter terminal. It will be expanded according to needs in the later stage. The total investment is expected to be 1.5 billion.
RMB.
Du Yuemei said: "Li Sheng, judging from Pengcheng's development speed over the past year, it is unlikely that such an airport will suffer losses as long as it maintains normal operations. I personally recommend investing in this, and I hope
Xiangjiang Air Transport Group's senior executives can go to the capital to visit mainland executives, allowing Xiangjiang Airlines to enter mainland routes, and Pengcheng Airport will serve as our base airport in the mainland."
As the first executive officer of the Li Group, Du Yuemei naturally does not only focus on the Kowloon Group. She is also thinking about the development of other groups.
This investment in Pengcheng Airport is a good opportunity for them. At present, the reform in the mainland is becoming more and more open, and many industries in Xiangjiang can enter the mainland. Now there is a real opportunity for airlines to enter. If they miss this opportunity now, they will wait until the mainland
After the economy develops, it will be more difficult for them to enter.
Now when they invest in the mainland, they are not afraid of losing money. First of all, they want to be able to enter the mainland's industry. Only by opening this door, and with the continuous development of the mainland's economy, can they obtain a steady stream of profits.
For example, the current petrochemical group, according to some terms, is currently incurring losses when setting up gas stations in many towns and villages. However, for the sake of the mainland market and in order to enter more provinces and cities, the petrochemical group still has no hesitation in setting up gas stations in many towns and villages.
's construction.
The same is true for the current opening of inland routes. With the current mainland economy, if they open routes between the mainland, as long as they are not particularly popular routes, they will basically only lose money.
You must know that the current control in the mainland is relatively strict, and the people's income is not too rich. Generally, those who fly are government department personnel.
The most important point is that even if Xiangjiang Airlines is not afraid of losses, it will not be easy to enter the mainland market. This involves many sensitive issues. Li Guangyu's major base airports can open international routes to some mainland cities, but if they want to open international routes to the mainland,
The problem of air routes is bigger.
The opening of international routes is through mutual exchange between the two parties. For example, the route from Xiangjiang to Shanghai can be opened by Xiangjiang Airlines. Mainland airlines can also open this route. The number of flights is also negotiated between the Xiangjiang Transport Bureau and relevant mainland departments. The opening of these routes
The rights of both parties on the route are equal.
Li Guangyu said: "We can invest in Pengcheng Airport. You and the Pengcheng government will negotiate the specific agreement in detail. As for Xiangjiang Airlines' entry into the mainland, I will instruct Zhao Wenhua to communicate with the mainland in the past few days and go to Beijing for some communication.
, but you still shouldn’t have too high expectations. This involves not only route issues, but also air traffic control issues in various places. It’s not easy for us to enter.”
Not to mention the mainland, Xiangjiang Airlines currently has seven base airports in Xiangjiang, Taoyuan, Kuala Lumpur, Bangkok, Vancouver, Sao Paulo, and London. Li Guangyu has basically opened international routes to avoid too much competition with airlines in various countries or regions.
compete.
As for competition on international routes, there is nothing we can do about it. If Xiangjiang Airlines does not compete with them, other airlines will compete with them.
Of course Du Yuemei is aware of the complexity involved, but she feels that she still has to give it a try. If this succeeds, it will be very beneficial to the future development of Xiangjiang Airlines.
You must know that the mainland has a market with a population of more than one billion. The demand for air transportation will definitely increase significantly in the future. If they enter now, they can arrange many popular routes. Even if they may suffer some losses now, they will double in the future.
Earn it back.
Du Yuemei said: "Li Sheng, I will discuss the investment in Pengcheng Airport with the Pengcheng City Government. I believe this will be a good investment and can bring us relatively generous returns in the future.
As for Xiangjiang Airlines, if it really doesn’t work, we can form a joint venture with the Pengcheng government in the future to set up an airline in the mainland. At that time, we will be the biggest beneficiary through various forms according to the situation."
Li Guangyu has no such plan for the time being. Since Du Yuemei has such an idea, Li Guangyu does not stop it. It is best if it succeeds. Even if it fails, he will not suffer much loss.
Compared with airlines entering the mainland, Li Guangyu is still more concerned about the layout of several major retail groups, as well as petrochemical, Phoenix Group, Jiayi Group and other companies in the mainland.
Li Guangyu said: "I will inject another 5 billion US dollars into your group this time. In total, your group's development in the past two years must also have the ability to make blood, especially the operation of the Taipei MRT. You must think more about it.
How can we reduce operating costs and generate revenue? Kowloon Group is not a charity, so you should pay special attention to some management aspects."
Du Yuemei could only listen to this. The reason why the Taipei MRT is in this situation is not because the Baodao government gave the benefits when it was established. It's just that the profits went to the Starlight Real Estate Group, and now they are the Kowloon Group.
They could only earn some hard-earned money, and there was no hope of recovering the cost. Du Yuemei also felt helpless about this.
At the beginning, she suggested to Li Guangyu that the Kowloon Group enter the real estate industry so that when they invest in some projects, the Kowloon Group would be able to recover the investment costs from the surrounding areas. Unfortunately, Li Guangyu did not agree, and there was nothing she could do.
Take subway investment for example. If the Kowloon Group can enter the real estate industry, property development at major subway stations will be enough for them to recover most of their costs. If the surrounding development area is large enough, they can even make a fortune.
After all, the transportation of properties on the station is extremely convenient and the flow of people is relatively good. The development of real estate in these places is more popular with consumers, and there is no need to worry about losing money in this investment.
It is a pity that although the idea is good, Li Guangyu does not agree with it here. The Kowloon Group is restricted from engaging in infrastructure investment, mainly in subways, expressways, ports, airports, and railways. The Kowloon Group does not want to think about other industries.
The Kowloon Bus Company just became independent a few days ago, which is to make the Kowloon Group more pure.
This time, the station properties of Taipei MRT Lines 2 and 3 are still taken away by Starlight Real Estate Group. It will take who knows how many years for the Kowloon Group to recover the cost of Taipei MRT.
Fortunately, the Kowloon Group does not rely on its own cost recovery, otherwise the Kowloon Group would have no development prospects at all.