Chapter 414: Give me Xu Cang some face!
"Are you here to handle 777's cancellation?" Lance Tamir's facial muscles were slightly stiff. "Ms. Qin, I don't quite understand what you mean."
Qin Xin confirmed: "Based on the original ten 777s ordered, we can take over your canceled 777 order."
When these words came out, not only Lance Tamir, but also Chief Information Officer Ferris Hayes took a deep breath. The eyes of the two men instantly flashed with light, and they were quite surprised that they had reached the end of their rope, but there was a new hope.
Previously, the large number of 777 orders had become a thorn in Boeing's side, especially under such sluggish economic expectations.
The stock market has a herd effect. When some people see others selling stocks, they may be led to sell their stocks as well, which is called panic selling.
Now, any airline executive who is a little bit rational will not link the crash to Boeing. However, if there are too many cancellations, it is easy to cause some unwarranted associations.
Those airlines that have not yet canceled their reservations will wonder whether those airlines that have canceled their reservations know some information that they are not aware of. Once this suspicion is formed, it will only become more and more intense with the passage of time, and eventually they will succumb to this suspicion and join the cancellation team, which will lead to panic selling similar to stocks.
Therefore, Boeing had better be able to stabilize the orders for the 777. This is not only to stabilize the company's profits, but also to stabilize the psychological state of those airlines that have not yet canceled their orders.
However, at this stage when expectations for the future economy are pessimistic, it would be good enough for those airlines not to cancel orders. To think that they can take over the canceled 777s is simply wishful thinking.
As a result, after a series of twists and turns, such an injustice happened... Big Head.
"Wait a minute, wait a minute..." Freese Hayes stepped forward to confirm: "Ms. Qin, is there a limit to the 777 orders you mentioned?"
Qin Xin smiled and said, "How many 777 orders have been canceled now?"
"It's estimated to be twenty... twenty-three." Ferris Hayes' eyes were sharp. "How about this number?"
More than 20 777s is not a small amount. Even for some large companies, it is a considerable investment. Freese Hayes actually doubted Qin Xin's financial resources. The estimated value of 23 777s exceeded 5 billion US dollars. Could Qin Xin or Xu Cang come up with so much money?
"Twenty-three?" Qin Xin agreed without even thinking: "We can accept this order of twenty-three."
Lance Tamir took a deep breath. Qin Xin looked to be in her twenties, but she didn't even blink when talking about a $5 billion order. If you didn't know anything else, you would have thought Qin Xin was buying some toys.
"Ms. Qin!" Lance Tamir said sternly, "If possible, would it be convenient for me to talk to Mr. Xu Cang?"
"No need." Qin Xin shook her head. "Xu Cang told me about this in advance. I can make all the decisions. As long as Mr. Tamir agrees to transfer the 757 production line to us, then we will take over the 23 777 orders."
"The 757 production line?" Lance Tamir and Ferris Hayes looked at each other. They could see the confusion in each other's eyes, especially Lance Tamir.
"Ms. Qin, excuse me for being so presumptuous, but are the requirements for the 757 production line yours or Xu Cang's ideas?" Lance Tamir asked.
Qin Xin smiled and said, "There is no difference in itself. The difference lies in Mr. Tamir's decision. Using a production line that should have been shut down in exchange for Boeing's survival, this deal should be a good deal."
Lance Tamir said: "Ms. Qin, the 757 is indeed scheduled to be shut down. The 757 is also an old model, but it still involves some technical secrets. If the production line is transferred to you, it is equivalent to a partial transfer of technology..."
Qin Xin understood: "We can negotiate the details of the transfer and give appropriate compensation."
"Appropriate compensation?" Lance Tamir couldn't help but frowned: "Miss Qin, perhaps you don't quite understand what I said."
"No, no, no, I know that very well." Qin Xin said with a smile: "Xu Cang and I have not concealed our need for the 757 production line. Why do you think this is?"
Lance Tamir frowned. "Either you are extremely confident, or your demand for the 757 production line is not that urgent."
"Which type do you think we are?" Qin Xin asked, "But no matter which type we are, it won't be a bargaining chip for you to raise the price, right?"
Lance Tamir's face flashed with displeasure: "Although the 757 is going to be shut down, there are still many technologies worth keeping secret. I just hope that those technologies can get the compensation they deserve."
Qin Xin said slowly: "Many people think that the reason why Airbus is targeting Bombardier is because the CS300 has impacted the market of the Airbus A319. But in fact, the real opponent of the A319 has never been the CS300?"
Lance Tamir snorted. "You mean the 737-700?"
"Of course! The 737-700 and 319 have many similarities. These two models are the real rivals. The CS300 is not even a spoiler." Qin Xin continued , "There are a large number of complex airports in the southwest and northwest of our country, most of which are short and narrow runways and high-altitude airports. The application scenarios of both the 700 and 319 are very broad. The expected market size is more than 300 aircraft. The choice between the 700 and 319 is not a simple market issue. It involves a lot of professional content. Then Mr. Tamir, who is the most professional authority now? Who can influence the model selection of airlines?"
Complex airports with short and narrow runways and high-altitude airports are extremely specialized operating environments. When operating at these airports, business is one of the considerations, but compared to plain airports, professional opinions are more important.
Because if you choose the wrong aircraft model at these airports, it will cause huge safety problems.
Previously, the 700 model was the basic model for these airports. However, with the introduction of the 319, this model is specially designed for such airports. To be honest, its applicability is slightly higher than that of the 700, but the advantage is not exaggerated, and there is still room for competition between the two.
At this time, it is very important to have a professional authority to set an example.
Even though Xu Cang had no intention of becoming an authority in the aviation industry, various events had made him such a figure in fact. His words and deeds could greatly influence airlines' choice of aircraft models, especially when there was insufficient knowledge about Category II special complex airports and high-altitude airports, the power of authority could be further enhanced.
If Xu Cang publicly stated that the A319 is more suitable for operations at such airports, many airlines would probably turn to the A319.
This is not a joke, this is actually happening.
Lance Tamir held his breath, the market size of 300 aircraft was really too attractive, especially when Boeing anticipated the bleak prospects in the future, this large order could greatly extend its life.
Moreover, the scale of 300 aircraft is definitely an extremely conservative estimate. As long as the model habit of Chinese airlines for complex airports and high-altitude airports can be fixed at 700, there will be more orders in the future.
The Chinese market is so huge!
This is something Lance Tamir had to admit.
Lance Tamir suddenly asked, "Can Mr. Xu Cang speak for the 700 aircraft?"
"Platform?" Qin Xin smiled. " According to Xu Cang, if he were to choose from the perspective of a pilot, there would be no reason for him to choose the 700. Although the 700 and 319 are both shortened sub-models of this model, the 700 was not designed for complex short and narrow runways and high-altitude airports. It's just that its technical data happens to meet the operating characteristics of such airports. The 319 was specifically designed to meet the needs of such airports. Can the two be the same?"
The 700 aircraft is like a blind cat catching a dead mouse when used on complex short and narrow runways and high-altitude airports, while the 319 is specially designed.
One is accidental, the other is deliberate.
It was a lucky coincidence, but it is impossible for all parts to be met, and there are still many shortcomings, which makes it not as good as 3 19.
Of course, some of the incompatibility shortcomings of the 700 aircraft are basically acceptable, otherwise, it would not be compared with the 319. However, no matter how acceptable it is, it is not as good as the specialized version of the 319.
Therefore, from a professional perspective, Xu Cang is 100% inclined towards 319.
However, when Lance Tamir heard this, he almost lost his temper on the spot.
However, Lance Tamir still managed his temper well: "Ms. Qin, we have not fully developed the capabilities of the 700 model in some aspects before. In the future, we will launch an extended model of the 700."
"But the fundamental platform cannot be changed." Qin Xin smiled and said, "Xu Cang can remain silent about this, but it is impossible for him to stand up for 700."
Lance Tamir's face was gloomy. He turned around and whispered a few words to Ferris Hayes, then came back to Qin Xin and said, "Okay! However, after you take over the 777 order we canceled, we must sign another supplementary agreement and re-determine the liquidated damages."
Qin Xin understood, but looked very relaxed: "Why, do you want to raise the penalty standard?"
If an airline regrets the order after placing an order, in addition to not returning the deposit, it will also have to pay some additional liquidated damages. The amount of liquidated damages is not small, but it is barely acceptable.
However, according to Lance Tamir, the standard of liquidated damages needs to be negotiated separately, and it will almost certainly be increased in order to prevent Qin Xin or Xu Cang from going back on their word.
In fact, this is not surprising. If Xu Cang and his team go back on their word, Boeing will not be able to bear it. In addition to collecting some liquidated damages, the problem has not been solved at all.
"Ms. Qin, if you can really solve our 777 cancellation problem, we can sell you the 757 production line. The increase in the penalty is just to ensure that everything goes according to plan." Lance Tamir said, "I believe that Ms. Qin is not taking over the canceled 777 orders for some other purpose, right?"
"That's natural. How much do you plan to raise the penalty to?"
"Seventy percent."
In other words, if Xu Cang and his friends no longer want the plane, the penalty will be 70% of the plane's price, which is basically equivalent to losing the entire plane. It would be better to just bite the bullet and buy it.
In fact, this is not an exaggeration. Some liquidated damages can exceed the original price, which means that not buying the product is a bigger loss than buying it, and it is well controlled.
Qin thought about it and nodded: "Okay!"
"Sure!" Lance Tamir was suddenly a little excited. This condition could prove that Xu Cang's intention to buy a plane was real, and Lance Tamir could not afford to be unhappy.
However, the next moment Lance Tamir added: "Although I feel that the problem with the 757 production line is not serious, but give me three days, and I will inform you when the board of directors has made a final decision."
Qin Xin seemed to be confident and hummed: "It's okay, I should be able to get the answer today."
Lance Tamir was stunned: "What do you mean?"
"Nothing?" Qin Xin did not elaborate, but thought of another thing Xu Cang mentioned: "I'm sorry, Mr. Tamil, I forgot that there is another thing Xu Cang told me."
Lance Tamir's face clearly flashed with displeasure: "And what?"
"Xu Cang said he hoped Boeing would withdraw its dumping complaint against Bombardier."
"What?" Lance Tamir didn't react at first, then he paused and said, "Didn't this proposal come from him? Why are you asking us to cancel it?"
Although the anti-dumping investigation on Bombardier has been concluded and the conclusion has been reached, the final official document has not yet been issued, and there is still room for change. Especially as Boeing is the accuser, as long as Boeing agrees, it can reconcile with Bombardier and avoid Bombardier being punished.
Of course, they had participated in the relevant reconciliation seminars before, and they were at the World Trade Center and were even witnesses to the impact.
However, they were on a low floor at the time and were among the first group of people to escape. Compared to those on higher floors, Lance Tamir and Ferris Hayes were quite lucky.
After nearly a week of psychological treatment, both of them are now fine.
However, as soon as Qin Xin mentioned the Bombardier dumping case, Lance Tamir immediately recalled that extremely unpleasant experience, and his expression became unnatural.
Qin Xin really didn't mean it. She didn't know about Lance Tamir and Ferris Hayes' experiences. Of course, if she knew, the result wouldn't change. Lance Tamir and Ferris Hayes' feelings were not within her consideration.
"We Chinese have an old saying, 'tighten and relax'. Bombardier's string is already tight enough, now it can be loosened."
Lance Tamir narrowed his eyes and said, "Xu Cang is going to take action against Bombardier? I heard that Bombardier has contacted Kawasaki Heavy Industries. It seems that you haven't completely blocked Bombardier's way out."
"Kawasaki Heavy Industries, how do you know we are not blocked?" Qin Xin said with a smile.
"Oh? It looks like Mr. Xu Cang is ready to close the net?" Lance Tamir thought for a moment: "But, if we withdraw the accusation, will Bombardier compete with us for business in the United States in the future?"
"That's naturally impossible." Qin Xin said, "Besides, because of this anti-dumping investigation, the relationship between you and Delta has also deteriorated a little. Wouldn't it be good to take this opportunity to repair the relationship with Delta? In addition, Bombardier will divest their aircraft business department in the near future. I can guarantee that the CS300 will not enter the US market."
Delta had made a lot of preparations to receive the 70-plus CS300s, including various personnel training. However, once Boeing sued the Trade Commission, the deal fell through, and its initial investment was completely wasted, a considerable amount.
Although the cooperation between Delta and Boeing has always been pleasant, Boeing's behavior this time still made Delta quite unhappy.
In the past, Boeing might not have cared.
In the aircraft market, aircraft manufacturers are in a proactive position. If you don't buy the aircraft, there are others who will, especially during the boom period, when Boeing is the boss.
But the future will require belt-tightening, customers are the boss, and Boeing has to consider whether to reconcile with Delta.
However, this erratic performance makes Boeing look a bit like a clown. Besides, is it really a reasonable choice to let Bombardier go back to the mountains?
"Bombardier may not appreciate what you do." Lance Tamir sneered.
"What does it have to do with Bombardier?" Qin Xin smiled and said, "This promise is for us, not for Bombardier."
Just then, Qin Xin's cell phone rang. Before answering it, she looked up at Lance Tamir and said, "Mr. Tamir, Xu Cang wants to talk to you."
"Hmm?" Lance Tamir was startled, but he still answered the phone: "Xu Cang, your request really surprised me. You want this promise as a bargaining chip in the negotiation with Bombardier? Have you solved the problem of Kawasaki Heavy Industries? Have you really pushed Bombardier to the brink of death?"
Lance Tamir could roughly understand Xu Cang's plan. However, he had a sense that Xu Cang did this not just for Bombardier, but he couldn't think of any specific purpose.
"The issue of Kawasaki Heavy Industries will be resolved." Xu Cang's voice was still so calm: "Mr. Tamil, give me Xu Cang some face."
