In August 2004, Yang Xing, who was in full swing with his major shareholder Boeing, was pulled by Zhang Shengli to Athens City where the Olympics were being held to accompany him to watch the competition. Yang Xing didn't want to come, after all, his negotiations with Boeing had reached the last moment. If he hadn't used his big move to buy hundreds of Boeing aircraft for his cheap airlines, he would have been afraid that Boeing would not let it go, and finally expressed his willingness to sell the equity of the Ocean Launch Company.

You should know that although the maritime launcher now seems to be losing money, as a very potential rocket launch technology, Boeing is very optimistic about the prospects. Even when the company was established to the present, Boeing is not discouraged. Because in 1999, Boeing was competing with Lockheed Martin for the US rocket launch contract and involved theft of the other party's internal contract, the US Air Force was very annoyed. It suspended Boeing's rocket launch qualification at the end of last year, causing Boeing's aerospace department to lose more than one billion US dollars. Now it is counting on the maritime launcher, an illegitimate overseas son, to open up the commercial rocket market, and of course it is unwilling to transfer it easily.

However, the conditions offered by Yang Xing were really attractive. The order amount of purchase of 100 Boeing passenger aircraft was as high as more than US$7 billion. If you add maintenance and training services, it would be a large order of 10 billion US dollars. This was not Yang Xing's intention, but had been planning for a long time, but he took this opportunity to get the offshore launch company, killing two birds with one stone.

The airline under Xinghai Trading was first acquired by a small company that provided official and private jet rental and maintenance services for Hong Kong rich people. Later, it expanded to mainly air cargo business and supplemented by private jet business, and did not involve too much in the civil aviation field. However, the transfer occurred in 1999. At that time, in order to thank Yang Xing for the Soviet secret files and long-term support for the domestic military industry, the domestic military specially approved the approval process in the name of the State Administration of Civil Aviation to shorten the approval process, and even take action first and then report when necessary. This is a big gift, which is equivalent to the relaxation of some air rights areas under the domestic aviation planning economic system. People like Yang Xing, who do not miss a slight opportunity, are keen to discover the business opportunities in it. If only used to transport goods, it would be too wasteful.

The domestic call for reforming the traditional aviation system has always been very high. After the reform, the three major reforms have separated domestic civil aviation and civilians, and the separation of government and enterprises have basically been achieved. And due to the butterfly effect of Yang Xing, the "Regulations on Domestic Investing in the Civil Aviation Industry" that should have been released in 2005 was released last year, and was relaxed and the restrictions on ownership were encouraged to enter the civil aviation industry. At present, many private airlines have participated in domestic market competition.

However, due to historical and policy reasons, the domestic aviation industry structure has not improved much over the years. China's civil aviation rights approval has long been based on first-come, first-served, and lacks outdated practices of competition and exit mechanisms. 70% of the air transport volume is concentrated in 30% of the areas, that is, it is mainly concentrated in more than a dozen large and medium-sized cities such as Beijing, Shanghai, and Guangzhou. The airport capacity of these cities has become saturated, and it is very difficult for newly entered private airlines to compete for the air rights moment in these markets, and it is difficult for the air rights moment in other areas to become the core of company profits.

In comparison, Xinghai Airlines has a certain advantage. Although Beijing and Shanghai's air rights were not available for a while, the freight business accounted for the main share of the other major Xingcheng businesses and had certain profit support. Moreover, in the short-distance passenger experimental flights in the core urban circle, small and medium-sized passenger aircraft mainly operated by domestic Yunqi and Yun10. Since these models can receive state subsidies, most of the passenger sources come from group employees and related companies, and the customer sources are stable. Over the past few years, they can always maintain a weak profit level. In the top three private aviation performance in China, this experimental effect has made the upper class of Xinghai Commercial have the idea of ​​becoming a cheap civil aviation company.

With the extensive cooperation between China Star and Virgin Group in the UK, Star Airlines has a great impression of the business model of Virgin Airlines, a famous low-cost airline under Branson. It has been a long time since the application report was filed, but the top leaders of the group have been very cautious about this. It was only passed a decision not long ago, and the introduction of the most important aircraft of low-cost airlines was left to the big boss Yang Xing to decide.

Yang Xing is also very interested in this mission. The group's manufacturing department is entering the field of civil aircraft, and the research and development of rotorcraft and supersonic business aircraft has achieved certain results. Recently, the central government has also heard of the experimental relaxation of low-altitude airspace in some areas and delegating the management rights of low-altitude airspace. The industry believes that learning from the experience of Europe and the United States, deregulating the regulation of low-altitude small general aircraft, and promoting the development of the national aviation industry will open up a huge private and official aircraft market for the country.

Yang Xing has always believed that in China, we must identify the weather vane of policy changes. Domestic general aviation is probably the last undeveloped huge market virgin land. By starting a low-cost airline before the policy, we can not only be familiar with domestic aviation management rules and regulations, obtain certain landing rights for second- and third-tier airports, but also establish our own aviation guarantee and ground service team, and prepare for the future relaxation of the general aviation market. Why not do it? So he had read a lot of information and decided to select all the aircraft of the imported low-cost airlines as the latest Boeing 737-900.

Low-cost airlines, also known as low-cost airlines, refer to new types of airlines with cheaper fares than ordinary airlines. Southwest Airlines first determined its business model. The Dallas-based American airline now ranks third in the world in terms of passenger capacity, with the largest number of airline cities in the United States and has maintained profitability for 30 consecutive years.

Before it, airlines had always given people the impression that they were high investment and high risk. After all, the cost of aircraft and fuel consumption are expensive. The expensive air ticket prices have made flying a luxury for a long time. The exquisite food and the thoughtful service of beautiful flight attendants are the first impressions of every passenger on flight.

But Southwest Airlines did the opposite. In 1971, it announced that it would only provide short-distance routes with simple meals and no additional services. The only advantage is that the air tickets are quite cheap, only 50 to 60% off for ordinary airlines. This practice was once regarded as "unregular" by many airlines. Southwest Airlines was regarded as a country bumpkin in the American aviation industry, and its practice was disdained by other airlines.

But the facts have proved that although Southwest Airlines' approach is simple, it has achieved a huge change in air travel focusing on luxury and luxury to mass and economy, which has had a great impact on the changes in the world economic situation and social concepts. In the 2001 "9/11" incident, terrorists used aircraft to hit targets, which caused the international aviation industry to fall into a depression as a whole, and then encountered bad news that international oil prices continued to rise. The cost of aviation fuel accounts for more than half of the total cost of aviation, resulting in the traditional airlines falling into trouble. The largest airlines in the United States are heavily in debt, and the famous American Delta and Northwest Airlines are on the verge of bankruptcy. Only Southwest Airlines continues to maintain its profit record for 33 consecutive years - this is unprecedented in aviation history.

In the mid-to-late 1990s, many emerging airlines began to imitate Southwest Airlines' operating model and achieved remarkable successes in North America, Europe, and Australia, affecting and changing the basic structure and development direction of the entire aviation industry. Now there are more than 60 low-cost airlines around the world and have more than 1,200 aircraft, becoming a force that cannot be ignored in the aviation industry.

If low-cost airlines want to make profits with low fare strategies, they must lower costs. They generally adopt an aircraft-type business strategy to simplify the training of crew members and aircraft maintenance personnel, realize the flexible allocation of crew members and aircraft between different routes, as well as the scale effect on the procurement of aircraft and their components.

The most popular thing for international low-cost airlines are the long-distance narrow-body aircraft such as Boeing 737 and Airbus A320. This is also the reason why Yang Xing proposed to Boeing, with a number of up to 120 aircraft. For such a large order, Boeing is not good at refusing Yang Xing's request to acquire the marine launch company. The two sides started a protracted negotiation to test each other's endurance and determination.

It's just a short shot now. If it weren't for Zhang Shengli being an old friend of Yang Xing for many years and his proposal to have a big business to negotiate with Yang Xing, Yang Xing wouldn't have left his negotiation team in Seattle and traveled all the way to Greece alone to watch the Olympics that had known the results before he knew the results. Now he only cares about the next 2008 Beijing Olympics. After all, Zhongxing Group has put a lot of effort into it and is the main partner of the Beijing Olympics.

Just like when he was sitting in the Athens Olympic Stadium watching the famous Chinese 110-meter hurdle player Liu Xiang tied the world record set by British player Colin Jackson in the final, winning China the first men's Olympic gold medal in track and field events history, making all Chinese spectators pass by crazy, his performance was incompatible with the enthusiasm in the field and restless.

After all, no one knew about Liu Xiang’s dramatic withdrawal at the Beijing Olympics four years later. At that time, the blow to people would make these people who were frantically applauding him would want to put all the stigma on him. Yang Xing felt that the Chinese people added too many emotional factors to the meaning of the Olympic champion, and the victory or defeat of competitive sports is possible. There is no need to lose, and it will collapse, as if they lose power and humiliate the country. It is really not worth it.

However, Zhang Shengli, who cheered for Liu Xiang, was hoarse in his throat. He was still excited and was still thinking about developing a game based on Olympic sports as soon as possible. Yang Xing felt that this proposal was interesting. The somatosensory game console wii, developed by his Nintendo, is currently in good sales momentum, and the sales volume surpasses the other two competitors Microsoft's xbox360 and Sony's ps3. Its unique somatosensory operation mode allows gamers to no longer sit on the sofa and potatoes, but can get exercise all over their bodies. It would be great to cooperate with the Olympic Committee to develop a sports game.
Chapter completed!