Republic of China: Ace Pilot

Chapter 50, Negotiation of Interests: The Business of the Aviation Industry

White gloves have different symbolic meanings in different cultural and historical contexts.

In religious activities, white often represents purity, holiness, and divinity, so white elements are used in many religious ceremonies, including white gloves.

In the military, white gloves have become a symbol of status and identity. This symbolism originates not only from Western religion but is also related to the solemnity and ceremonial nature of the military. Wearing white gloves can highlight rank and demonstrate an officer's formality and dignity.

In social settings, white gloves can also be seen as a symbol of fashion and elegance. With the introduction of Western culture, wearing gloves has become a popular social habit, and white gloves are regarded as a symbol of nobility and status.

But there is another explanation.

If you don't want your hands to get dirty, then wear a clean white glove so that no one can see the stains on your hands.

The slightly overweight man in front of them was a white glove, the person hidden behind him, enjoying the benefits and providing protection without revealing his own identity.

This was a tacit rule of the Nationalist government. Even if the Guangzhou Nationalist government was dissolved, these people would still go to the Nanjing Nationalist government, continue to receive benefits, and retain their power.

After the other party assured him that they could obtain the approval in the shortest possible time and maintain a long-term cooperative relationship, Fang Wen said, "As long as the company's approval and legality are guaranteed, we can provide 10% of the shares."

Offering phantom shares is the best way to win over partners. It allows them to align their interests, and the specific amount of annual dividends can be manipulated without affecting the company's shareholding.

Yan Bangfu, wearing white gloves, leaned back in his seat and shook his head slightly.

“That won’t work. If you can’t convince me, you’ll have no chance of convincing my boss. You need to tell me whether it’s worth taking your shares. Otherwise, we can only settle it in cash, a one-off deal.”

A one-off deal is out of the question. Private airlines need powerful backers, and it's not just the Ministry of Transport that's taking a stake.

But the other party wasn't interested in hearing about the company's future prospects. As people from the Ministry of Transport, how could they not know about the enormous profits that aviation brings?

Isn't China Airlines a goldmine?

They actually wanted to know who started the company.

This problem is not just Fang Wen's, but will be faced by several major families in Northeast China.

Manager Liu, representing the Northeast Financial Consortium of the Republic of China, stood up.

“The eight major families in Northeast China are willing to jointly establish a private airline, with Fang Wen serving as the company’s general manager and flight director.”

Yan Bangfu's eyes lit up at the sight of the white gloves.

Before the September 18 Incident, Northeast China was very wealthy. Industrial products and local specialties from outside the Great Wall flowed into the interior, and wealthy merchants made a fortune.

Although the Japanese have occupied Northeast China, these people should still have their assets.

Yan Bangfu's face immediately broke into a smile.

"Is that so? That's extraordinary strength. Please wait a moment, I'll be right back."

He got up and went outside to make a phone call.

After a while, he returned with a serious expression.

"The boss said that your companies are quite wealthy, and Fang Wen is currently gaining momentum. The idea of ​​establishing a private airline is certainly a good thing. But my boss can't handle this kind of thing by himself; we need to organize a meeting."

"What kind of bureau?" Manager Liu asked.

"On the surface, it's a private airline jointly established by the eight major families in Northeast China and Fang Wen. But behind the scenes, you have to give us half of the shares to distribute, and we will also appoint a manager."

They made outrageous demands, taking half of the shares without asking.

Manager Liu's face turned pale instantly; the other party's eating habits were too aggressive, and he couldn't keep up.

But airlines' profits are far more than 50%.

Fang Wen had told him that.

For short-to-medium distance passenger flights within 300 kilometers, the ticket price is around 10 yuan per person. For long-haul flights over 700 kilometers, which shorten the journey from two days to a few hours, the ticket price can reach over 25 yuan.

除去保养，按照一年250趟来回航班计算，18座的波音80客机可以毛收入：25*18*500=225000大洋。

22.5 silver dollars is just basic income.

Each flight can also transport airmail and valuable cargo.

Airmail is priced per letter because regular long-distance mail takes a month to arrive, making airmail much more expensive.

An airmail letter could be priced at around 0.5 silver dollars.

For air freight, because the cargo capacity is relatively small, the price is more expensive than that for passenger transport, at 1 silver dollar per kilogram.

These two combined can bring in tens of thousands of dollars a year.

There are also in-flight expenses, especially transportation services. The expected revenue from the Boeing 80 alone after it goes into operation could reach 30 yuan a year.

It takes at most a year and a half to break even.

Clearing his mind, Manager Liu rallied and argued his case logically.

"No, we've invested money, but we don't have control of the company, so we can't do it at all. Unless you want phantom shares."

“It’s not a phantom stock.” Yan Bangfu said succinctly.

The two began to haggle.

"That's only 20%, no more. When we establish air routes in the future, we'll need to make arrangements with the airports on both sides, so we need to leave some room for maneuver. Also, we've promised to have a 10% stake in the Fuxing Society."

"Revival Society? How did you get involved with them? Even so, 20% is too little. How about this: if we take the shares, we have to do the work. We'll handle any problems the airline encounters, and you eight big families don't need to worry about local matters. Can we get 40% this way?"

“If we really can’t take it, let’s be frank. Before we came here, the owners set a bottom line: if we don’t get 60% of the shares, we’d rather not do it.”

Seeing that Manager Liu was resolute, Yan Bangfu stopped arguing and went out to make a phone call.

After a while, he came back and gave new advice.

"Revival Society? Is their 10% stake just a nominal share?"

"It's a phantom stock, but they haven't replied yet."

"How about this, as long as Fuxing Society agrees to take 10% of your shares, we will only take 30% of the shares and will no longer send anyone to participate in management. However, if the company encounters problems that we cannot solve, we will take care of them."

After a series of business negotiations, Manager Liu gradually gained the upper hand and brought the other party's exorbitant demands down to a reasonable level.

As long as the other party is willing to take shares without being involved in company operations, 30% is not a big deal.

Manager Liu, who secretly breathed a sigh of relief, looked at Fang Wen.

Since the other party has made the investment by Fuxing Society a condition, then we'll have to see what Fang Wen has to say.

Fang Wen said, "We need to send a telegram to Nanjing to inquire."

"Nanjing Telegraph Bureau? Come with me, we have our own telegraph office, the sooner the better."

With a clear intention to succeed, Yan Bangfu led his group away to the now-closed Guangzhou National Government building, where people were still working and packing things up for transport.

Yan Bangfu walked familiarly into a three-story building and pushed open the door to one of the rooms.

"Xiao Wang, send a telegram to the Nanjing Telegraph Office."

(End of this chapter)