Chapter 50: 50, Interest Negotiations, Aviation Business Secrets
White Gloves have different symbolic meanings in different cultural and historical contexts.
In religious activities, white usually represents purity, cleanliness, and sanctity, so white elements, including white gloves, are used in many religious ceremonies.
In the army, white gloves become a symbol of status and identity. This symbolic meaning originates not only from Western religion but also from the solemnity and ceremonial nature of the army. Wearing white gloves can highlight status level and display the officer’s formality and solemnity.
In social occasions, white gloves may also be seen as a symbol of fashion and elegance. With the introduction of Western culture, wearing gloves became a popular social habit, and white gloves were regarded as a symbol of nobility and status.
But there is another layer of explanation.
If one doesn’t want their hands to get dirty, they can put on a clean pair of white gloves, so no one will see the stains on their hands.
And the slightly plump man in front of them is a pair of White Gloves, hiding the person behind him who enjoys the interests, provides protection, yet does not expose their own identity.
This is a time-honored rule of the National Government. Even after the Guangzhou National Government disbanded, these people would still go to the Nanjing National Government, taking their interests and retaining their power.
After the other party guaranteed that they could obtain the approval document in the shortest time and maintain a long-term cooperative relationship for future interests, Fang Wen spoke: “As long as you guarantee the company approval document and its legality, we can provide 10% dry shares.”
Dry shares are the best way to win over, as they can align interests, allow flexibility in annual dividends, and won’t affect company shares.
White Gloves Yan Bangfu leaned back in his seat, shaking his head slightly.
“That won’t do. If you can’t convince me, you certainly can’t convince my boss. You need to tell me if your shares are worth taking. Otherwise, we can only settle in silver dollars, a one-off deal.”
A one-off deal is certainly not acceptable. A private airline company needs backers, and those taking dry shares aren’t just from the Ministry of Communications.
But the other party doesn’t want to hear about the company’s future prospects or the like. As people from the Ministry of Communications, how could they not know the huge profits brought by aviation.
Isn’t China Airlines just a cornucopia?
What they really want to know is who is behind the company establishment?
This dilemma is not Fang Wen’s, but one the Eight Great Families from the Northeast will face.
Shopkeeper Liu, the representative of the Republic of China Northeast Consortium joint body, stood up.
“We Eight Great Families from the Northeast are willing to jointly establish a private airline company, with Fang Wen as the company’s general manager and flight manager.”
White Gloves Yan Bangfu’s eyes lit up.
Before the September 18th Incident, the Northeast was very wealthy. Industrial goods and specialty products from outside the passes flowed continuously into inside the passes, making those wealthy merchants extremely rich.
Although the Japanese now occupy the Northeast, these people’s wealth should still be intact.
Immediately, Yan Bangfu’s face broke into a smile.
“That’s how it is. That’s impressive strength. Please wait a moment, I’ll be right back.”
He got up and went outside to make a telephone call.
After a while, he returned with a serious expression.
“My boss said that your families have substantial wealth, and Fang Wen is currently on the rise. Establishing a private airline is quite a fine story. But for this kind of thing, my boss alone can’t handle it; we need to set up a gathering.”
“What kind of gathering?” Shopkeeper Liu asked.
“On the surface, it’s a private airline company cooperatively established by you Eight Great Families from the Northeast and Fang Wen. Privately, you need to give up half of the shares for us to allocate, and we will also appoint a managerial personnel.”
The lion opened its mouth wide, directly taking half the shares.
Shopkeeper Liu’s face instantly paled. The other party’s appetite was too voracious; he couldn’t handle it.
But the huge profits of the airline are more than just fifty percent.
Fang Wen had told him.
For medium and short-haul passenger flights within 300 kilometers, the ticket price per person is around 10 silver dollars.
For long-haul flights over 700 kilometers, which shorten a two-day journey to a few hours, the ticket price can reach more than 25 silver dollars.
Excluding maintenance, calculated at 250 round-trip flights per year, an 18-seat Boeing 80 passenger aircraft can gross: 25*18*500=225000 silver dollars.
225,000 silver dollars is just the base income.
Each flight can also carry airmail and valuable cargo.
Airmail is charged per letter. Since ordinary long-distance letters take a month to deliver, airmail prices are relatively much higher.
Roughly, one airmail letter can be priced at 0.5 silver dollars.
For cargo air transport, due to the small capacity, it’s even more expensive than passenger rates, at 1 silver dollar per kilogram.
These two combined can bring in tens of thousands of silver dollars per year.
There is also consumption on the airplane and special transport services. Just the expected income from putting a Boeing 80 into operation can reach 300,000 silver dollars per year.
It can break even in at most a year and a half.
Shaking off his thoughts, Shopkeeper Liu gathered his spirits and argued forcefully.
“No, we invest the money but have no company control, which we can’t do. Unless what you want is dry shares.”
“Not dry shares.” Yan Bangfu was concise.
The two engaged in haggling.
“Then only 20% at most, no more. In the future, when establishing flight paths, both airports will need greasing palms; we need to leave some leeway. Also, for the Revival Society side, we have promised them 10% shares.”
“Revival Society? How did you get involved with them? Even so, 20% is too little. How about this: since we’re taking shares, we have to deliver. In the future, for any problems the airline company encounters, our people will solve them. You Eight Great Families don’t need to worry about local matters. Can we take 40% this way?”
“We really can’t. To be frank, before coming, the patriarchs set the bottom line: without 60% shares, we’d rather not do it.”
Seeing Shopkeeper Liu’s firm tone, Yan Bangfu stopped arguing and went out again to make a phone call.
After a while, he returned and gave a new suggestion.
“Revival Society? Is their 10% dry shares?”
“It’s dry shares, but they haven’t replied yet.”
“How about this: as long as the Revival Society agrees to take your 10% dry shares, our few families will only take 30% dry shares, no longer dispatch personnel for management, but for company issues that can’t be resolved, we’ll handle them.”
After a bout of business negotiation, Shopkeeper Liu gradually took control, pressing the other party’s voracious demand down to a reasonable range.
As long as the other party is willing to take dry shares without involving company operation, 30% isn’t much.
Shopkeeper Liu, secretly relieved, looked toward Fang Wen.
Since the other party made the Revival Society’s investment a condition, it depends on Fang Wen now.
Fang Wen spoke: “We need to send a telegram to Nanjing to ask.”
“Nanjing Telegraph Office? Come with me; we have our own telegraph office. The sooner, the better for this matter.”
Yan Bangfu, intent on making the deal, led the group away to the already closed Guangzhou National Government, where some people were still working and others packing things to load onto vehicles for transport.
Yan Bangfu familiarly walked into a three-story small building and pushed open the door of one of the rooms.
“Little Wang, send a telegram to the Nanjing Telegraph Office.”
