Chapter 257 – Sichuan Airlines
Feng Yu’s mood was excellent as he had become the controlling shareholder of Aiwa. He had also set up Wind and Rain Consulting company. When Wilson heard that this company had 500 million USD funds, he personally became the legal counsel of the company. Feng Yu also let He Zhaoji recruit a group of dealers. He told He Zhaoji that the general direction should not change, but he could slightly adjust the buying and selling prices. However, he must report to Feng Yu every day over the phone.
Feng Yu wanted his investments to be stable. There were many opportunities for him to earn money in the future. If He Zhaoji uses 100 times leverage, and there were high fluctuations in the gold prices, he might suffer massive losses.
If Feng Yu only had 1 million USD, he would choose to take this risk. But after he had 500 million USD, he wanted to be safe. Next year, gold and crude oil will have high fluctuations, and that was enough for Feng Yu to earn a few hundred million more.
Feng Yu needed safe investments and not high-risk speculations now.
It was impossible for Feng Yu to trick the Fu family again as he had invested 500 million in the gold market. He can’t be using so many funds to deceive them. Furthermore, Fu Rongqi’s team also felt that gold would rise within this year and he had also invested a lot in it.
Fu Rongqi lent Fu Rongjing 100 million for his company to operate smoothly. Fu Rongjing also borrowed a sum of money from his connections and handed over to Fu Rongqi. He wants to get back his losses.
Fu Rongqi sighed. The most critical taboo in financial investment was to look at the returns and ignore the risk. One might become a billionaire overnight, but one could also become bankrupt overnight too.
But this time, Fu Rongqi still helped Fu Rongjing to invest. He also asked his two other brothers to invest together.
This was the benefit of a family. When one of the family members runs into financial difficulties, the rest could lend him money. Also, when one member of the family was suppressed by a rival, the rest of the family will fight back together!
Feng Yu’s relationship with the Fu family improved, and it was the Fu family that gave in first. Fu Rongqi was a cunning person, and Feng Yu could not tell what he was thinking. But one day, Feng Yu would let the whole Fu family be his followers and listen to his orders!
……
It was the end of October. Feng Yu and Hou Haitao came to Tianfu. Kirilenko had given Feng Yu good news. After Russia announced that they will be leaving the Soviet Union, the Soviet Union factories’ leaders became bolder.
Kirilenko had contacted two factories who had agreed to sell aircrafts to China. One model was passenger plane, Tupolev Tu-154 and the other model was a military aircraft, Ilyushin Il-76. The Soviet Union now had an excess of aircraft. There were no uses for all those aircraft, and there were no buyers for these planes. Yet, the factories were still manufacturing them. Now the factories managers knew that the Soviet Union might be disintegrating, and they wanted to convert these things into cash.
Tupolev Tu-154 was still fine as it was a commercial plane. Currently, in China, the market value of this plane was about 60 million RMB. As for Ilyushin Il-76, China had bought a few. China claims that it was for military purpose but in fact, these planes were purchased to be reverse engineered and imitate. China at this time could not afford to buy Boeing’s large passenger planes. They cost more than 200 million RMB.
Sichuan Airlines was set up in 1988 and currently still using small aircraft like Harbin Y-7 and Harbin Y-12. These aircrafts had less than 50 seats, and it could not match Sichuan Airlines demand. This was a problem faced by all of China’s airlines. Sichuan Airlines was currently applying for funds to purchase larger planes.
“Director Hou, don’t worry. If this deal went smoothly, I would surely give you what I promised you!”
To prevent any incidents like the Civil Aviation Administration not approving this deal, Feng Yu brought Hou Haitao along. He needs the protection of Bing City’s Aviation Factory. After all, Ilyushin Il-76 was a military aircraft, and even though it could be converted into a passenger plane, it might still be against the regulations.
“I trust you. You don’t need to worry too. I had met the Director Cheng of Sichuan Airlines several times. Even though we are not friends, but with me around, you will not suffer any losses. But Manager Feng, your business is getting bigger. You can even buy aircrafts now!” Hou Haitao can’t help sighing.
When Feng Yu had told Hou Haitao about this deal, he thought Feng Yu was joking with him. Sell airplanes? Do you know how much an aircraft cost?
But this was real. Especially Feng Yu promised him that he will help him get the technologies of Ilyshin and Antonov series engines. This was too attractive to Hou Haitao. He immediately agreed to help Feng Yu contact buyers.
It was also because of Hou Haitao, Feng Yu dares to do this business. If not, after he bought all the aircraft and the Chinese authorities forbid him to sell, his money would go to the drain.
……
“Oh, Director Hou, it’s been a while since we last met. Was our last meeting in Beijing? Right. Where is Manager Feng? You mentioned that he has some aircraft for sale. Why he didn’t come with you?” Director Cheng met with Hou Haitao and shook his hands.
Feng Yu: “……” Am I invisible? I am taller than Hou Haitao, and you can’t see me?
Hou Haitao pointed to Feng Yu and introduced him: Director Cheng, this is Tai Hua Trading’s, General Manager Feng. Manager Feng, this is the Director of Sichuan Airlines, Director Cheng.”
Director Cheng shook Feng Yu’s hand. He had an embarrassed and puzzled expression on his face. He had thought that Feng Yu was Hou Haitao’s secretary.
“Manager Feng, I’m sorry. I did not recognize you. Please take a seat. Xiao…… Feng Tao, go and get some tea for our guests.” Director Cheng had wanted to call Xiao Feng, but he felt that it would be disrespectful to Feng Yu. He also could not call his secretary Xiao Tao, as it would also offend Hou Haitao. He thought that he should change his secretary or asked his secretary to change his name.
“Come, have a smoke.”
Feng Yu waved his hand: “Thanks, but I don’t smoke.”
“Manager Feng, I heard from Director Hou that you are able to get aircraft at low prices?” Director Cheng asked.
Feng Yu smiled. The more eager the other party was, the higher the chance of this deal succeeding.
“Of course. Currently, I have only two models. One is Tupolev Tu-154, and the other is Ilyushin Il-76. I guarantee that all the planes are new. The former is a commercial passenger plane, and the latter can be used for both military and commercial purposes. I can also do some modifications based on your requirements.”
Director Cheng’s eye sparkles. These were all large passenger planes. These planes were at least 3 times bigger than his current fleet.
“What’s the price?”
“Director Cheng, what’s your ideal price and how many planes do you need?” Feng Yu smiled and asked Director Cheng. He wanted to know how much, Director Cheng would offer. No matter what price he offered, Feng Yu would still make profits. After all, he had gotten these planes at a meager price.
“I need 5 aircraft, 3 Tupolev Tu-154, and 2 Ilyushin Il-76. I am willing to offer a total of 250 million RMB.” Director Cheng hesitated for a while before telling Feng Yu a price which he felt it was very low.
If it were the market price, the planes would have cost nearly to 400 million.
Feng Yu did a mental calculation. 250 million RMB and his profits will be more than 80 million RMB. But he believed that this was not the highest price Sichuan Airlines can offer. They should be able to provide a higher rate.
“Director Cheng, are you joking with me? 2 Ilyushin Il-76 will cost more than 200 million. If based on the market value, these 5 planes should be close to 400 million. I saw you as Director Hou’s friend and considered this as supporting the country, I want 350 million. You can think about it.”
Sichuan Airlines was really ambitious to want to buy 5 planes at once. In Feng Yu’s previous life, someone had made almost 100 million RMB by selling 4 Tupolev Tu-154 planes. If Feng Yu could not even make profits of over 100 million, then it would be a waste of his rebirth!