Chapter 1128: Power Rent-Seeking Space

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Fan Wuxian soon came to Panshi, and the people in charge of Panshi Airport were all happy when they saw the big boss coming.

In the recent period, the work has not been smooth, because of problems with the Civil Aviation Administration, several new routes have not been approved, which immediately disrupted Panshi Airport's efforts to deal with the increasing passenger traffic, and everyone was caught off guard.

In the past, no one dared to say no to Fan's Airlines and Panshi Airport, and this time I don't know what kind of medicine the people from the Civil Aviation Administration took the wrong medicine, and they actually dared to attack Fan's industry.

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

"Actually, this situation has been there for a long time, but it hasn't happened to us at Fan's Airlines," one executive reported to Fan.

Fan Wuxian nodded, I remember that an airline executive once said, either the leader promotes you to be an entrepreneur, the real sense of the entrepreneur is not like us, only the market can create entrepreneurs, we are just officials and businessmen.

As far as Fan Wuxian is concerned, he appreciates this remark, because this sentence breaks through the big problem that currently exists in state-owned enterprises, that is, the essence of executives who are not official and business.

Since 1985, the process of decentralization of airlines has begun in China, when only the General Administration of Civil Aviation was the only national carrier in China, and the introduction of region-based airlines, such as China Southern Airlines, Southwest Airlines, Northwest Airlines, China Eastern Airlines, and so on. The central government owns some airlines, while some provincial-level local governments have supported the establishment of some airlines, such as Sichuan Airlines, Shandong Airlines and Hainan Airlines.

In the early 90s, as new airlines entered the market, it not only caused fierce market competition at that time, but also prompted airlines to expand their fleets and networks rapidly. Due to the fragmentation of the aviation market, the Directorate General of Civil Aviation stopped issuing operating licenses to new airlines in 1994, when nearly 40 airlines were already in operation.

Fan's Airlines, a private airline, can only be said to be a special case, the situation at that time was more complicated, coupled with Fan Wuji's investment to create the largest comprehensive airport in China, but also has a certain demonstration effect, not to mention that Fan Wuzhi has introduced a large number of advanced passenger aircraft and transport aircraft through Panshi Airport to improve domestic shipping conditions, so the high-level will specifically approve this very special existence.

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

At this time, it is the time for the great development of Fan's Airlines, the state-owned shipping companies have congenital shortcomings, but Fan's Airlines does not have so many problems, so it has easily become a leader in the industry, the only one of the most dynamic private airlines in China.

Today, the airlines have ushered in another major integration, the new Air China after the merger of China Southwest Airlines, the new China Eastern Airlines after the merger of Northwest Airlines and Yunnan Airlines, and the new China Southern Airlines after the merger of Northern Airlines and Xinjiang Airlines, becoming the three largest airlines in China, forming a three-legged momentum, and the competition for flight schedule resources, the lifeblood of airlines, has also begun.

What is Golden Hour? It's just that you can sit back and wait to make money.

The person in charge of the marketing department of an airline said that the route schedule resource is one of the most important core competitive resources of an airline in addition to capacity, and no matter how good your marketing is done, the service will work hard, and you will not only not be able to sell tickets at two or three o'clock in the morning, but also lose money on your own fuel.

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

Even the state-owned airlines that are related to the family are so competitive, then the situation of private airlines like Fan Airlines can be imagined, and it is no wonder that some people dare to stumble at this time, it is estimated that they are taking this opportunity to test Fan Wuxi's reaction.

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

Recently, news has come out that it is very likely to open the door to the monopoly of the domestic civil aviation industry in the near future, and the influx of private capital into the civil aviation industry has been unstoppable.

Unable to compete with large airlines for high-quality moments, private airlines can only turn to low-price strategies and intensively launch price reduction activities, but these measures will obviously be collectively boycotted by peers with state-owned backgrounds, and even the bad situation that the ticketing system will be blocked, but this low-price strategy has not been favored by the industry, thinking that it is not a long-term solution.

The golden moment of popular routes is firmly controlled by large state-owned airlines, and the support of financial institutions for private aviation is small, and there is no fair policy environment, making it difficult for private airlines.

Although there is fierce competition among airlines of all ownership systems in the terminal, most of the business is still outside the market.

Too scarce resources and too much centralized approval have led airlines that are supposed to compete freely in the market to market to market to the Civil Aviation Authority, the state department that can make the difference between life and death for an airline.

According to an executive of Fan's Air, the price of getting a golden flight slot every day from Monday to Friday at the capital airport is more than 10 million yuan.

Some airlines give houses and cars, and the cost spent is recorded as entertainment expenses in the company's accounts, and the collective money is given to the collective for profit, which is justifiable within the airline. And all the best costs will eventually enter the air ticket price, which will be paid by all consumers, resulting in domestic air ticket prices still at the world's high level.

"** of the Civil Aviation Administration—" Fan said, but he didn't have a better solution now.

The Civil Aviation Administration of China belongs to the collective, but it is difficult to say who the beneficiaries behind this collective are. Before figuring out the situation, Fan Wuxi would definitely not make a big move, and if he couldn't find the other party's death hole, he would not make a rash move, which was also the principle that Fan Wuxi had always adhered to.

In the 80s of the last century, in order to alleviate the huge contradiction between supply and demand of commodities, China tried to divide the same commodity into two kinds of planned and unplanned, and sold it at a lower price within the plan and at the market price outside the plan.

To a certain extent, this dual-track price system will help to 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 large and medium-sized state-owned enterprises.

But on the other hand, at a time when the economy was overheated, the contradiction between supply and demand was acute, and the disparity between planned prices and market prices was huge, this gave some officials and lawbreakers a lot of room for rent-seeking.

With the deepening of the reform and the gradual improvement of the market economy, since the nineties of the last century, the dual-track price system has gradually disappeared and no longer has legitimacy. However, the dual-track system of price change, which has never been withdrawn from the stage of history, has always appeared in all aspects of social life.

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

The only way to operate a certain route is to apply for approval. If a charter company has taken a fancy to a certain route, it needs to first report to the corresponding regional administration for approval, and then the Civil Aviation Administration will approve it. Get the right to operate the route first, then apply for flight schedules, and then transfer them to other airlines.

In a series of approval and transfer processes, a huge rent-seeking space has been cast.

In the early years, when the charter business was booming, some companies directly contracted charter flights for some popular routes and then sold them to travel agencies. Taking Beijing to Sanya as an example, if a 737 plane is chartered, the charter cost will be 200,000 yuan, and the middleman's profit will be about 20 percent.

The first group of businessmen engaged in civil aviation charter business in China were involved in the aviation charter business from the nineties of the last century, and they started by selling air tickets.

In fact, these people are not engaged in the shipping business, but only bribe some leaders of civil aviation to obtain the flight schedules of the departure routes of the capital airport that they control, and then sell some of them to China Southern Airlines, empty gloves white wolf.

"You go to apply for the timetable, and the Authority will take out the timetable and tell you that it's all full." A senior executive of Fan's Airlines said to Fan Wuxian helplessly, "But if you go to a more connected middleman or charter company at this time, maybe there will be hidden routes and times again." In reality, that's exactly what happened. ”

For example, in the nineties, which was the golden age of Russia's foreign trade, at that time, it was very troublesome for domestic planes to fly to Russia to pass through customs, but if it was a Russian charter flight, it would often be grayed out of customs.

As long as you have goods and planes in your hands, then you only need to break through the last obstacle to get unimpeded, which is the right to operate routes and flight schedules, and these resources are precisely in the hands of the Transportation Department of the Civil Aviation Administration.

Obviously, since many years ago, in the civil aviation industry, the control of important resources by administrative power has formed a huge interest group, and behind the price distortion is the distortion of the distribution of interests.

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