Wealth

Vol 5 Chapter 1128: Power rent-seeking space

No disease came to Panshi soon, and the people in charge of Panshi Airport were very happy and excited.

The work since the latest stage has not been smooth. Due to the Civil Aviation Administration’s problems, several new routes have not been approved. This has disrupted the Panshi Airport’s plan to solve the ever-increasing passenger flow and made everyone caught off guard.

In the past, no one dared to say no to Fan Airlines and Panshi Airport. This time, they did not know what kind of medicine was taken by the Civil Aviation Administration of China. They actually dared to start with Fan's industry.

After Fan Wuyi got off the plane, he immediately held a high-level meeting in the airport conference room to inquire about the recent situation.

"In fact, this situation has existed for a long time. It's just that we were not born on our Fan Airlines," an executive reported to Fan Wuyihui.

Fan Wubing nodded, remembering that an airline executive once said that you are an entrepreneur if you are not a leader to promote you. In the true sense, entrepreneurs are not like us. Only the market can create entrepreneurs. We It's just an official and a business.

As far as Fan Wubing is concerned, he is more admired for these words, because these words reveal the big problem that currently exists in state-owned enterprises, that is, the essence of executives not official business but not business.

Beginning in 1985, the decentralization process of airlines began in China. At that time, the Civil Aviation Administration of China was the only national carrier in the country, and it transformed into the introduction of regional-based airlines, such as the establishment of China Southern Airlines, Southwest Airlines, Northwest Airlines, Eastern Airlines, etc.

The central government owns some airlines, and some provincial and local governments have supported the establishment of some airline companies, such as Sichuan Airlines, Shandong Airlines, and Hainan Airlines.

In the early 1990s, as new airlines continued to enter the market, this not only caused fierce market competition at that time, but also prompted airlines to quickly expand their fleet and network. Due to the fragmentation of the aviation market, the General Administration of Civil Aviation stopped issuing operating licenses to new airlines in 1994. At that time, nearly forty airlines were already operating.

Fan's Airline, the privately-owned airline can only be said to be a special failure. The situation at that time was more complicated. In addition, Fan's investment has created the largest comprehensive airport in China, which also has a certain demonstration effect. What's more, Fan Wuyi introduced a large number of advanced passenger planes and transport planes through Panshi Airport to improve domestic shipping conditions. That's why the top management specifically approved this very specific existence.

Later, due to the deregulation of fares and the impact of the Asian financial crisis, destructive competition appeared in the air transport market. In 1998, the entire industry suffered a large-scale loss.

At this time, on the contrary, it was the time for Fan Airlines to exhibit. The state-owned shipping companies had inherent shortcomings. But Fan's Air, the airline company does not have so many problems, so it easily became the leader in the industry, the only most dynamic private airline in China.

Today, the airlines have ushered in a major integration. New Air China after the merger of China Southwest Airlines, New Eastern Airlines after the merger of Northwest Airlines and Yunnan Airlines, and New China Southern Airlines after the merger of North Airlines and Xinjiang Airlines have become the three largest airlines in China. , The formation of a three-legged trend, and the competition for airlines' life-and-death flight cutting resources has also begun.

What is the golden moment? Just can wait to make money.

A person in charge of the marketing department of an airline said that route time resources are one of the most important core competitive resources of an airline in addition to capacity. No matter how good your marketing is, work harder in your service. At two or three o'clock in the morning, you will not only be unable to sell tickets, but will also lose money on your own gas.

Striving for more and better routes and flight time resources has become the unanimous goal of all airlines.

Even the state-owned airlines that are involved in kinship are competing in this way. The situation of private airlines like any airline can be imagined. It is no wonder that some people dare to stumble at this time. It is probably because of this opportunity. Want to test Fan Wuyao's reaction.

Fan Wubing seriously considered this issue, and felt that this time the matter was not simple. It is very likely that it was a real battle caused by the conflict of ideas about nationalization and privatization.

Recently, news has come out that it is very likely that the door to the monopoly of the domestic civil aviation industry will be opened in the near future. The influx of private capital into the civil aviation industry is already unstoppable, and the various hidden barriers of the stuck private aviation industry will come down one after another, but the most important thing is that the saturated time resources in various places become the most realistic restriction.

Cannot compete with large airlines for high-quality moments. Private airlines can only switch to low-price strategies and intensively launch price-cutting activities. However, these measures will obviously be collectively resisted by peers with state-owned backgrounds. There may even be a bad situation where the ticketing system is blocked, but this low-price strategy has not been optimistic about the industry, and it is considered not a long-term solution.

The golden hour of popular routes

There are large airlines that are firmly in control, and financial institutions do not have a fair policy environment for private aviation, making it difficult for private aviation.

Although airlines of various ownerships compete fiercely in the terminal, most of their businesses are still outside the market.

Too scarce resources and too concentrated approval. Let those airlines that are supposed to compete freely in the market place the target of marketing on the Civil Aviation Administration, which can determine the life and death of an airline.

According to an executive of Fan's Airline, Fan Wuyao explained that the price of a golden flight every day from Monday to Friday at the airport is more than 10 million yuan.

Some airlines give cars to houses. The cost spent is recorded in the company's account as hospitality expenses, and the collective money is used for collective profit. This is justified within the airline. And all the ** costs will eventually enter the ticket price and be paid by all consumers. As a result, the price of domestic air tickets is still at a high level in the world.

"The General Administration of Civil Aviation of China nbsp;nbsp;" Fan Wuyao said, but he has no better solution now.

The General Administration of Civil Aviation belongs to the collective **. But who is the beneficiary behind this ** group? It's hard to say clearly. Fan Wubing would definitely not raise his hand before he figured out the situation. If he couldn't find the other party's dead spot, he would not rush to make a move. This is also the principle Fan Wubing has always adhered to.

In the last one. In the 1980s, in order to alleviate the huge contradiction between commodity supply and demand, China tried to divide the same commodity into two types: planned and unplanned. It is sold at a lower price within the plan, and sold at the market price outside the plan. This is a dual price track.

To a certain extent, this dual-track system will help realize the transformation of China's price model, promote the transformation of the price formation mechanism, and gradually introduce the market mechanism into the production and exchange of state-owned large and medium-sized enterprises.

But on the other hand, when the economy is overheating, the contradiction between supply and demand is sharp, and there is a huge gap between the price of the plan and the market price, this has given some officials and lawbreakers a lot of rent-seeking space. Sold to the black market. The price difference is earned from this, and China's ill-fated economy kicks off and gave birth to China's first batch of powerful capital.

With the continuous deepening of reforms, the market economy has gradually improved, starting in the 1990s. The dual-track price system is gradually disappearing and no longer has legitimacy. However, the redesigned dual-track price system has never withdrawn from the stage of history. Has always appeared in various aspects of social life.

In addition to the flight schedule approval, another rent-seeking black hole of civil aviation is the charter flight business derived from the centralized approval of the time.

To operate a certain route, the only way is to apply for approval. If a charter company takes a fancy to a certain route, it needs to report to the corresponding regional administration for approval first, and then the civil aviation administration will examine and approve it. First obtain the right to operate the airline and line, and then apply for the flight schedule, and then transfer it to other airlines.

In the first-line approval and transfer process. Created a huge rent-seeking space.

In the early years, when the charter business was booming, some companies directly contracted charter flights on popular routes, and then sold them to travel agencies. Take Beijing Fei Sanya as an example. If you charter a sudden plane, the charter fee is two to three million yuan, and the profit of the middleman is more than 20%.

The first batch of domestic businessmen engaged in the civil aviation charter business began to get involved in the aviation charter business in the 1990s. They started by selling air tickets~www.wuxiamtl.com~ Later some people also established airlines and gradually became involved in civil aviation. The industry has accumulated a deep network of contacts.

These people are not actually engaged in shipping business. It was only through bribery and compensation for some civil aviation leaders to obtain Shixuan's control of the flight from the airport to the airport, and then sell part of Shihai to China Southern Airlines, the empty glove white wolf.

"If you go to apply for a time, the bureau will show you the timetable and tell you that it's all full." A Fan Airlines executive said helplessly to Fan Wuyao, "But if you go to find the relationship at this time, it will be more ironic. Intermediaries or charter operators. Perhaps the hidden routes and moments will be available again. In reality, this is the case."

For example, in the 1990s, it was a golden age known for Russia's foreign trade. At that time, it was troublesome for domestic aircraft to fly to Russia to pass customs, but if it was a Russian chartered aircraft, it would often be cleared in gray.

As long as you have goods and airplanes in your hand, you only need to get through the last obstacle and you will be able to flow unimpeded. This is the right to operate routes and flight schedules. These resources are precisely in the hands of the Transportation Department of the Civil Aviation Administration of China.

Obviously, since many years ago, in the civil aviation industry, the administrative force's control of important resources has formed a huge interest group. Behind the price distortion is the distortion of profit distribution.

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like