Hou Haitao was slowly sipping on his tea while Director Cheng and Feng Yu were negotiating with the price. He had no intentions to interfere with the pricing negotiations. Feng Yu had asked him along was to introduce the buyer.
Actually, 350 million RMB was already very cheap for Director Cheng. But Hou Haitao had told him that Feng Yu had always sold his items at very low prices. So, he decided to bargain further.
Furthermore, if he believed that the higher management would approve if the total price is less than 300 million RMB. But Feng Yu does not seem to be willing to sell at that price.
“Director Cheng, my cost is almost 300 million and these planes held up most a lot of my capital. How can you let me earn so little? 330 million RMB. This price is considered I am giving you these planes with no profits.”
Director Cheng looked at Feng Yu. Who are you trying to fool? The cost is 300 million RMB? Although he does not know the actual value of the planes, he knew that it would not be so high.
“Manager Feng, 300 million is the highest we can offer. Our Sichuan Airlines does not even have so much money. We still need to apply funds from Civil Aviation Headquarters. There is a leader from the headquarters here, and if you agree to 300 million, we can get the paperwork done fast.”
The headquarters have a leader there? Feng Yu looked at Hou Haitao. Hou Haitao shook his head. He also did not know about this.
“Director Cheng, why not you invite the leader here? Maybe after I have a talk with him, I might agree to your price.”
Kirilenko’s contacts had more than 5 planes. It all depends on how many planes Feng Yu could sell. Now, not only Sichuan Airlines needed bigger passenger planes. Other airlines in China were also in need of bigger aircraft.
If a leader from the Civil Aviation Administration could sign a purchasing contract with Feng Yu, then he could accept lower prices.
If he could earn 10 million per aircraft, then 10 planes will be 100 million. Furthermore, Feng Yu’s cost price was much lower and how could his profits per aircraft be 10 million?
Director Cheng paused. What do you mean? You want to speak to the leader from headquarters? Are you looking down on me?
Hou Haitao suddenly added: “Feng Yu could get more than 5 aircraft. He can get whatever quantity you wanted.”
Director Cheng’s eyes widen. Whatever quantity we wanted? How can this young man’s business be so big?
“Please wait here and enjoy your tea. I will be back soon.
10 minutes later, Director Cheng opened the door, and a man in his 50s to 60s walked in. When Hou Haitao saw this man, he immediately stood up.
“Oh, former leader, how come it’s you?”
“Xiao Hou? When Xiao Cheng told me that you are here, I thought he was joking. Why are you here today?”
Xiao Hou? (Same pronunciation as a little monkey) Feng Yu almost laughed. Hou Haitao was about 50 years old, and he was still be addressed as a little monkey? Why not call Sun Wukong?
“Manager Feng, let me introduce you to my former leader, Chief Chen. He was our Bing City’s Aviation Factory, former director. Later, he was transferred to Civil Aviation Administration headquarters to be the Deputy Chief.
So, Hou Haitao was his former subordinate. No wonder he was so enthusiastic when he saw Chief Chen.
“Chief Chen, call me Xiao Feng will do.”
“I will address you as Manager Feng. I heard from Xiao Cheng that you are here for a business deal with him. You can get cheap Soviet Union planes?” Chief Chen smiled and asked.
“I know a few friends in the Soviet Union and my company is dealing in International trades. We import a lot of Soviet Union products. Director Hou is very familiar with my company. My Soviet friends told me that he had two models of aircraft for sales and wanted me to help him look for buyers. The prices will be reasonable and would be much cheaper than the market rate.”
“Really? What models are those?”
Feng Yu introduced both models, and Director Cheng told Chief Chen the market rate for each model of planes.
“Manager Feng, how many planes can you get?”
“Chief Chen, how many planes do you need?” Feng Yu’s eyes shined. The Civil Aviation Administration Headquarters had the intention to make a bulk purchase.
China at that this time was developing their aviation industry and there was a shortage of large passenger planes. But the aviation factories in China could only manufacture small aircraft, and they do not have the technologies for bigger passenger planes. Even in the future, China also does not have the technologies to manufacture large passenger planes. They still need to purchase from other countries.
Actually, China did research on big planes, but it was more towards military transport planes. They did not focus on commercial passenger planes.
Chief Chen was excited when he heard that Feng Yu could get big passenger planes from the Soviet Union. He had wanted to find out from Feng Yu about how many aircraft can he get. But instead, Feng Yu asked him how many does he need? What does he mean? You can get any number of planes I needed?
“Manager Feng can really talk big. I want 20 aircraft. Can you get so many?”
“No problem. When do you need?” Feng Yu was overjoyed. 20 planes! This was a big order.
If the deal goes through, Feng Yu and Kirilenko will earn a lot. Kirilenko had said that these two Aviation factories had a total of 26 aircraft and some more still in the midst of manufacturing. Although the factories were only willing to sell 6 planes to Kirilenko, Kirilenko told Feng Yu that if the price was right, he could get all 26 planes. If time permits, even 30 planes were not a problem!
Chief Chen stood up in shocked. Feng Yu could even get 20 aircraft? He had thought that Feng Yu could get at most 10 planes and he had only wanted to teach Feng Yu a lesson. Young men should not brag. But it seems that 20 aircraft were really not a problem for Feng Yu.
The “Great One” had mentioned in the past that China will develop the Aviation industry and the Civil Aviation Administration Headquarters set up 6 airline companies after that. Sichuan Airlines, China Eastern Airlines, Air China, Shanghai Airlines, China Southern Airlines and Hainan Airlines. These airline companies all had international routes, and all the airlines needed large passenger planes.
These airline companies were private airlines, but all of them were still under the management of China’s Civil Aviation Administration Headquarters. These airlines do not have enough funds to purchase new aircraft and needed to get the funds from the headquarters.
If this Manager Feng could get cheap passenger planes, then the airline companies can stop their negotiations with Europe and the US for the sales of aircraft. With these affordable and good planes, why waste money to get more expensive ones?
“What’s the lowest price for Tupolev Tu-154 and Ilyushin Il-76?” Chief Chen asked.
“If you are getting 10 and above, Tupolev Tu-154 will be 45 million RMB per unit and 80 million for one Ilyushin Il-76. The capacity for Tupolev Tu-154 is about 150 to 180 seats. Ilyushin Il-76 can reach up to 200 seats, or you can get a large cargo hold.”
Feng Yu was screaming in his heart. Hurry and agree. This price was already 30% lower. You should decide now.
Sichuan Airlines’ Director Cheng was overjoyed. The price Feng Yu asked for now, was much lower than earlier.
“The prices were still slightly high. How about this? Manager Feng, I will speak to the leaders and will give you an answer in a few days.” Chief Chen said. He did not agree to the deal on the spot like Director Cheng.
“No problems. But please be quick. The situation in the Soviet Union is very messy, and my friend used this opportunity to get these planes. Any longer, I am afraid that you can’t get this price.” Feng Yu starts to pressurize Chief Chen.
Although Feng Yu got not finalized a deal with Sichuan Airlines today, he was still excited. This was a big order by the Civil Aviation Administration Headquarters. Feng Yu will be richer!
