Chapter 170: 169, Confirming Gambling Company Operation Model, Airplane Purchase Rights Swap Agreement
The councilor was recommended by the church, and the judge was through John Harvey’s connections.
Basically, it can be said that the upper-level routes have been established.
But these cannot bring clients to Las Vegas, and there are other things to do.
How to obtain accurate client resources?
It cannot be said that parking an airplane in a certain city and then saying free flights to Las Vegas to play cards will make people flock there.
That is obviously impossible.
Clients are the key to Taishan Casino Company’s success; everything else is just the foundation.
Except for Mr. Fang, no one else knew how to proceed.
The new confusion made the others tense up involuntarily.
After all, preparing so much only to still fail is something no one wants to see.
Regarding this, Mr. Fang already had ideas.
After returning to Las Vegas, he held another small meeting.
Amid everyone’s anticipation, Mr. Fang looked at John Harvey.
“Harvey, you’ve dealt with all sorts of people and know a lot. I have a few questions for you.”
John Harvey nodded.
“Question one: Outside of Nevada, is gambling legal?”
“No, it’s illegal.”
“Question two: Outside of Nevada, how do they participate in gambling?”
“Mostly in underground casinos operated by gangs.”
“Question three: How much money can these gangs make operating underground casinos?”
“From what I know, not much. They have to give a long-term bribe to the local police bureau, and other departments too, plus face competition from colleagues, and finally the profit shared with gang members.”
Mr. Fang showed a smile.
“That’s the answer. Gangs control the client resources, but operating underground casinos themselves is illegal, requiring many extra expenses. In Nevada, gambling is legal here. Connecting these three questions leads to a simple conclusion: just hand the business over to local gangs and let them bring the clients.”
Everyone showed an expression of understanding but not fully, feeling something was off.
John Harvey asked on behalf of everyone: “Client resources in each place are limited. If they bring all their clients to us, won’t it affect their own underground casino business? When they realize their business is being taken, we’ll face retaliation from the gangs. They won’t be merciful just because of money given before.”
This made Lin Shuiwang very surprised: “General Manager, don’t do this. It’s too dangerous.”
After hearing Lin Shuiwang’s translation, Zhao Jiu also joined in dissuading: “Harvey is right. Gang people hate most when others touch the meat in their bowl. General Manager, your plan might initially attract those gangs to work, but once they figure it out, they’ll deal with you.”
Indiana agreed: “In the United States, you can offend police and councilors, but you must not offend gangs. Whether Mafia or others, they all follow one creed: if they suffer a loss, they will retaliate.”
Facing everyone’s dissuasion, Mr. Fang explained: “My plan is only half said; you haven’t heard the rest.”
So it wasn’t finished yet. Everyone was very curious how Mr. Fang would solve this problem.
Mr. Fang continued: “If I took away the client resources of local gangs, I’d definitely pay a price, but I don’t plan to do that. They can maintain their own clients. We provide the venue and service, and finally share profits with them.”
This was another emerging thing.
According to Mr. Fang’s plan, select one gang in each target city, then have them find gamblers and bring them to Las Vegas.
Then, provide each gang with a dedicated gambling hall, dealers, and various services, and share profits with them.
This is the model of future junket operators, binding the interests of the casino and gangs together.
This way, it can also protect the casino company’s interests, just sharing a portion of the benefits from the client resources they bring.
For the gangs, they no longer need to operate underground casinos and can earn income more decently.
It’s simply a win-win situation.
John Harvey was stunned, looking at Mr. Fang with admiration in his eyes. This really is a business genius, turning decay into magic.
Relatively speaking, the other three weren’t so exaggerated. They had seen Mr. Fang’s wonders and were used to it.
Seeing everyone convinced by him, Mr. Fang continued: “Now, I need to send people to Los Angeles, San Francisco, and Salt Lake City—the three nearest major cities—to contact local gangs. Who will go?”
Lin Shuiwang raised his hand high: “General Manager, I’m best at this kind of thing. I’ll handle all three places.”
Mr. Fang thought about it. Lin Shuiwang often dealt with all sorts of people and knew multiple languages, indeed most suitable for dealing with gangs of different ethnicities.
He instructed: “If you go, just deliver the message. Tell them about free airplane transport for passengers, dedicated gambling halls, and dividends. If they agree, proceed with talks; if not, don’t force it.”
“I understand,” Lin Shuiwang replied.
The customer acquisition plan was confirmed.
The next day, Lin Shuiwang took the train out of Las Vegas.
Now the casino was undergoing major renovations, and the airport was under tense construction.
One last thing was missing: the airplane.
Mr. Fang could fly to transport passengers, but it wouldn’t last. After all, he would return to China in two months.
He planned to purchase three Boeing 247s as resident operational airplanes at Las Vegas airport, specifically for fixed city-to-Las Vegas routes.
For this, Mr. Fang called Neil, who was still in the United States.
But he received bad news.
He never expected the Boeing 247 to be sold out.
Due to the Boeing 247’s outstanding performance, plus Boeing’s heavy promotion of Mr. Fang’s Asia-Europe long-distance flight, American Airlines ordered 60 units.
This directly led to Boeing’s production line running at full capacity. Other airline companies wanting to order Boeing 247s would have to wait until American Airlines’ planes were all delivered.
Mr. Fang now wanting to buy Boeing 247s was simply impossible.
And the D.332 would require going back to Europe to order, which was even more unrealistic.
So he could only sign a service contract with an airline company.
There were quite a few domestic airline companies in the United States currently, but only three had the carrying capacity that satisfied Mr. Fang.
Namely: American Airlines, Trans World Airlines, Eastern Airlines.
American Airlines was currently developing rapidly, continuously merging multiple small airline companies, and had formulated more complete company flight paths.
For Mr. Fang’s small business, they had no interest at all.
Trans World Airlines was founded in 1925 and recently renamed; previously called Western Air Express Company.
Its headquarters was in Missouri’s St. Louis, radiating to various places in the United States from the central region.
Eastern Airlines was founded in 1926. Headquarters in Florida’s Miami; this “Eastern” refers to the easternmost part of U.S. territory.
Mr. Fang chose between Trans World Airlines and Eastern Airlines.
He suddenly realized that Trans World Airlines’ headquarters location, St. Louis, was near the city where he discovered Strange Mountain.
Thinking he could take this opportunity to further understand that Strange Mountain.
Mr. Fang then contacted Trans World Airlines.
For the dedicated route flight demand, Trans World Airlines was somewhat surprised and hesitating about this unprecedented business.
But after Mr. Fang revealed his identity, they enthusiastically invited him to St. Louis and requested flying the D.332 there.
Mr. Fang simply flew the D.332 to St. Louis for direct negotiations.
The airplane crossed a 2500-kilometer range and arrived over St. Louis City.
That mysterious energy fluctuation was still very clear, emanating unmoving from Strange Mountain.
Unfortunately, no time to deal with it now. Mr. Fang activated the radio device to contact the ground and then landed.
After the airplane landed, a group of people came to greet.
The hatch opened, John Harvey got off first, and after a while, he came back into the airplane to explain.
“The leader is Trans World Airlines’ president. They’re very interested in the D.332 and want to come in for a tour.”
Mr. Fang roughly guessed their intentions.
Due to Boeing 247’s full production, Trans World Airlines had no better airplanes to compete with American Airlines and could only choose to buy from other companies.
His flying the D.332 across the Atlantic had finally fermented in the United States; their interest was natural.
Mr. Fang didn’t mind promoting the D.332.
After all, for every D.332 sold, Dewoitine Company gave him a kickback, probably 15%.
For this, Mr. Fang naturally agreed.
Immediately, the group entered the interior of the D.332.
They were full of curiosity about this airplane and asked various questions.
“Mr. Fang, from reports in Europe, we understand you also participated in the D.332’s modifications, right?”
“Yes, mainly on the wings, changing the original forward-swept wings to swept-back wings, making the airplane more stable,” Mr. Fang replied.
The president walked through the airplane’s corridor without handrails and asked again: “I know your airline company has 4 Boeing 247s. For you, having flown both types, you should be very familiar with both models. Can you share your thoughts?”
Mr. Fang was stunned. Boeing Company and Dewoitine Company were both his airplane supply sources; badmouthing either wouldn’t be good.
His expression made the Trans World Airlines president understand, quickly explaining: “Rest assured, I’ll keep this conversation confidential and not tell outsiders. Also, if what you say is truthful, I’ll immediately provide the dedicated route flight service you want.”
With this assurance, Mr. Fang could speak.
He and the president got off the airplane and, when only the two were present, he spoke.
“The D-332 has sturdy fixed landing gear, with huge streamlined fairings closely connected to the engine nacelles on the wings. This design may limit the airplane’s performance and range.”
The president involuntarily looked back at the airplane, thoughtful.
Mr. Fang continued: “Dewoitine Company is a private airplane design company; they have shortcomings in hydraulic devices, so using fixed landing gear is normal. When I flew it, I didn’t feel any major issues. The Boeing 247’s advantage is its aluminum alloy structure is relatively lightweight, and the retractable landing gear has little impact on flight.”
The president detected Mr. Fang’s ambiguity and became anxious.
“Mr. Fang, your answer is very important to us. Please reply seriously.”
Mr. Fang said leisurely: “When I was in the air, I saw a strange mountain north of St. Louis City. Can you tell me what that mountain is called?”
“That’s the ruins of Cahokia City, left by Native Americans.” Surprisingly, Trans World Airlines’ president knew about Strange Mountain.
Cahokia. Mr. Fang memorized the name. He now understood that buying land with cultural relic nature was impossible, so he would have to explore in other ways later.
Then, he continued explaining the differences between the Boeing 247 and D.332.
And finally summarized.
“The Boeing 247 is undoubtedly the best medium-range airplane currently; its range can’t cross the United States, but its performance in all aspects is excellent. The D.332 is a bit slower in speed, but its range and payload are much higher than the Boeing 247. Actually, they are not in the same competition category—one medium-range, one long-range—both the best airplanes currently.”
The president nodded satisfactorily: “I heard Taishan Airlines plans to buy five D.332s, which would occupy Dewoitine Company’s full yearly productivity. Can you spare two for us?”
So that’s what it was about.
Mr. Fang hesitated.
Once the Japanese airplane ownership plan was implemented, Taishan Airlines might reduce at least 2 Boeing 247s. Originally, the company wanted to replace the vacated routes with D.332s.
If sold to Trans World Airlines, how to make up for the short-term carrying capacity deficit in his company?
Taishan Airlines was his foundation. Even if he couldn’t get dedicated airline service from Trans World Airlines, Mr. Fang wouldn’t do anything to harm Taishan Airlines.
He shook his head without hesitation: “No, our company’s business is also expanding; I can’t spare 2 D.332s for you.”
Trans World Airlines president sighed helplessly: “Our two companies are in similar situations, but you don’t have an opponent like the gigantic American Airlines. Can you imagine it buying 60 Boeing 247s at once? I think it doesn’t even need that many airplanes; it just wants to monopolize all U.S. airline business, then swallow up other airline companies when their business weakens.”
Mr. Fang strongly agreed: “Having such a powerful opponent is indeed tough. I’d like to help you but am powerless, after all, Taishan Airlines’ Asia-Europe route is about to open.”
Trans World Airlines president hesitated, then said: “Our company has a long-term partnership with Douglas Company. Their DC-1 passenger aircraft is specifically to compete with the Boeing 247. When it launched, we helped a lot. For that, Douglas Aircraft Manufacturing Company gave us Trans World Airlines exclusive purchase rights to buy any model they produce in the future. If you’re willing to swap, our two companies can sign a purchase right swap agreement.”
（1933 production, Douglas DC-1 benchmarked against Boeing 247）
“Purchase right swap? Wait a moment.” Mr. Fang turned and called John Harvey over.
He asked Harvey: “Is there such a thing as a purchase right swap agreement?”
John Harvey explained: “A purchase right swap agreement is a special agreement mainly involving an exchange of specific purchase rights between parties. This type of agreement is usually used in real estate, stocks, bonds, or other tradable assets, allowing parties to exchange purchase rights to specific assets under agreement terms.”
It really existed. Under legal protection, Mr. Fang wanted to know what airplanes Douglas Company had and if they were worth swapping for D.332 purchase rights.
