Chapter 262 The largest blue ocean market in the 21st century!

Anyone who has bought an airplane knows this.

Airplanes are not like other consumer goods. You can’t just pay and place an order and then pick them up.

For example, large aircraft manufacturers such as Boeing and Airbus have to wait for several years just to get orders.

Want to cut in line?

It’s actually very simple. You just need to pay more money to buy the manufacturing serial number.

The earlier the serial number is, the more money the customer needs to pay.

In the past, there was a private jet customer from the Middle East who spent more than 747 million US dollars to jump the queue in order to get his own 5000 from Boeing early.

You know, the bare-metal cost of a Boeing 747 is just over 1 million US dollars.

In order to cut in line, the Middle Eastern customer paid half an extra plane ticket!

One can imagine how much money these near-monopolistic aircraft manufacturers make.

However, seeing that the heads of various airlines were almost beating their brains out in order to get the order for the Flying Rubik’s Cube first, Chen Jue, as the host, couldn’t bear to see everyone ruin the “harmony”.

It is also to make it easier for the heads of these airlines to pay out their money.

After greeting everyone at the scene, Chen Jue invited all the CEOs and directors to a conference room provided by the organizer of the air show.

After everyone was seated and the PPT was turned on, a list of quotations for the “Flying Rubik’s Cube” was displayed on the LCD screen.

“Hiss~ 5 million for a single machine?”

“Isn’t this price too high?”

“Yes! President Jue! The purchase price of a Boeing 737 is just over 1 million US dollars. Yours is five times more expensive. Can you go for less?”

“Is there any discount for buying more?”

The heads of various airlines were collectively furious.

Xie Lifeng, the head of China Eastern Airlines, who had just boasted that he would be the first to cut in line to make purchases, now blushed and wished he could find a gap between the floor tiles to hide in.

The total assets of China Eastern Airlines are only over 2700 billion yuan. If they buy 300 Flying Cubes at once, China Eastern Airlines, which is already operating with high debt, will probably go bankrupt on the spot.

Seeing all the big CEOs around them yelling that it was expensive, Wang Han, the representative of Juneyao Airlines who was also present, twitched his face and said, “Chen Jue, you forgot to put a RMB symbol on your PPT!”

“Ahem… Sorry, this PPT was rushed out at the last minute.” Chen Jue looked back and saw that there was indeed no unit symbol, so he immediately explained it to the middle-aged CEOs present.

As soon as they heard that the price was in RMB instead of in dollars, the atmosphere in the conference room finally became a lot more relaxed.

However, these airline executives still cast envious glances at Wang Han.

After all, as one of the earliest entrants, Juneyao Airlines even had its flight control system of the Flying Cube developed by Wang Han. It is conceivable that it must have received a lot of preferential benefits from Chen Jue in secret.

So several persons in charge who had cooperative relations with Juneyao Airlines kept signaling to Wang Han at the table, suggesting whether he could convince this young CEO.

“Uncles and aunts, don’t count on me!”

“We handed over most of our shares in Juneyao Airlines before we could barely get the first batch of delivery sequence from Magic Cube Group. I was not paid a penny less for the purchase of each aircraft.” Wang Han revealed the truth at the table.

Chen Jue also nodded and confirmed: “The Flying Cube produced by our group is the latest cutting-edge product, especially the energy pack and engine, which use a lot of rare earth materials and graphene. The purchase price of 5 million per unit is already a discount for our friendly companies.”

“If we can really export in the future, the price cannot be calculated in RMB! It must be quoted in US dollars or euros.”

When everyone saw that not a penny was missing, they gave up the idea of ​​bargaining.

But when they turned around, the CEOs present asked about the production capacity and delivery time of the Flying Cube.

After all, it involves the replacement of old and new models of hundreds of aircraft under the company’s own name.

If the delivery time is delayed too long, it will be a huge loss for the airline.

After riding the Flying Cube, ordinary passengers will no longer want to take the traditional old flight! You must get the delivery sequence as soon as possible.

Chen Jue was delighted to see that none of the airline executives dared to question the RMB 5 million per aircraft offer.

The actual cost price of a Flying Rubik’s Cube, calculated based on material and labor costs, is less than 2000 million yuan per unit in the Rubik’s Cube factory.

Once the expansion of the Super Rubik’s Cube factory is completed, the ex-factory price can be further lowered.

With this calculation, Chen Jue made a net profit of 4.8 million yuan for every Flying Cube sold. And each of these domestic airlines here has no less than a hundred aircraft.

Especially for giants like Air China, China Eastern Airlines and China Southern Airlines, the number of aircraft they own is no less than 900.

Once the replacement is fully implemented, the economic benefits it will bring cannot be described in hundreds of billions, it will definitely be over one trillion!

It makes money faster than when Chen Jue was selling Rubik’s Cube arms at the robot conference before.

So after counting the order demands of those present and taking a look at the draft contract figure of 1264 aircraft, Chen Jue flipped through the PPT to give everyone a brief glimpse of the situation.

“At present, our Rubik’s Cube Group has three mature production lines, and the fastest one can produce a flying Rubik’s Cube in 3 hours.”

“When the Gigafactory expansion is completed in January next year, the number of production lines will be expanded to 1, and it is expected that one unit can be put into production in about five hours.”

“These orders can be fully digested by September next year at the earliest!”

As soon as this production capacity was revealed, all the CEOs present showed excitement.

The faster the Magic Cube Group produces, the earlier they can pick up the goods.

When some domestic airlines have completed the replacement, they will go abroad to seize international routes. However, the backward riding experience of those old Boeing and Airbus aircraft will never be a match for the Flying Cube.

So after hearing this production capacity data, the heads of both China Eastern Airlines and China Southern Airlines were thinking about whether they should place more orders.

Only Chairman Tao Yeping of Air China frowned as he looked at the production capacity announced on the PPT and asked, “Boss Jue, how confident are you that your company will get the international airworthiness certificate?”

“If it’s just the domestic market, I’m worried that the cost of replacing the aircraft won’t be enough to cover the ticket prices!”

After this statement was made, many airline CEOs present also became worried.

Since the outbreak of the epidemic, the domestic civil aviation industry has been hit hard.

In the past, air ticket prices often cost thousands of yuan, but during the off-season, even if they are sold at a 1% or 2% discount, the occupancy rate is still low.

So for these airlines, the real big money comes from operating international routes.

Because international routes are long and cross-border flight fares are expensive, they make money much faster than domestic medium- and short-distance flights.

If this ‘Flying Cube’, like COMAC’s C919, cannot withstand the pressure from Boeing and Airbus and fails to obtain European and American airworthiness certificates, the profits it brings will be greatly reduced.

In response to Tao Yeping’s concerns, Chen Jue shrugged and said, “We will definitely not be able to obtain the European and American airworthiness certificates in the short term! Even if the higher-ups allow our Magic Cube Group to export, Boeing and Airbus will find ways to hinder it.”

“But don’t worry, the benefits that the Flying Cube can bring are not limited to the existing mature routes.”

“Mr. Tao, why don’t you open your mind and temporarily forget about the take-off and landing methods of the old aircraft!”

As soon as he finished speaking, Chen Jue continued to press the PPT with a confident smile on his face.

On the new page of the PPT, the 421 existing mature commercial routes in the country were marked out.

These routes are spread across China, basically covering all provincial capitals and popular tourist cities.

Any passenger who chooses to travel by plane will choose one that suits him or her from these 421 commercial routes.

However, when Chen Jue scrolled the PPT and marked out the blank and connected county-level sections on the route map one by one.

The eyes of all the airline CEOs present were shining.

Including Mr. Tao who raised the doubt, everyone looked excited at this moment.

“This… is this county-level navigation?”

“That’s right! Why didn’t I think of that!”

“The Flying Cube can take off and land vertically!”

“Even in the smallest county or town, we can build a playground for emergency landing!”

“If all 2846 counties in the country were connected by air, wouldn’t that add tens of thousands of new routes?”

“This is definitely the biggest blue ocean market in the 21st century!”

“Even if a ticket sells for 100 yuan, it’s incredible!”

(End of this chapter)