Chapter 1802 Fierce Battle with the Board of Directors 1

On the morning of Christmas Eve, the office of Yuanshan Capital was crowded. Except for the employees on duty, most of the people who came to the company today were at the leadership level. Several directors came, causing the employees to whisper in private, thinking that something had happened. Something big, or the company is preparing to make a big move.

Thinking of this, some people are gearing up to send messages to colleagues with whom they have good relationships. Everyone knows that once a large project led by the company starts to operate, no matter whether it succeeds or not, a big red envelope cannot be obtained afterwards.

In the large conference room, 11 directors gathered together. I don’t know what they can accomplish. The momentum was overwhelming. Some of them were whispering to each other and they didn’t know what to say. The rest were either playing with their mobile phones with their heads down or closing their eyes to relax. .

When the time came to 9 o'clock, the door of the conference room was pushed open again, and Yang Cheng walked in at the lead, followed by Liu Junyu in professional attire, with a very full sense of ownership.

He sat in the chairman's position without hesitation. In the past, this was a position that could only be occupied by Yang Sen, but it was not against the rules for Yang Cheng to sit up.

He cleared his throat to attract everyone's attention and said loudly, "Everyone, I will preside over today's board of directors, and I will answer your questions one by one.

So let me first answer a question that everyone is more concerned about. Regarding Delta Airlines’ dividend ratio, I need to emphasize that this was approved by the board of directors of Delta Airlines. This number has been unanimously recognized by the company. "

Someone couldn't help but asked, "Jason, we believe that Delta Air Lines' profits are not stable. Shouldn't we continue to maintain stable cash flow at this time to resist unknown risks?"

Another person stood up and said, "Yes, we believe that the profits of American airlines are currently at an all-time high, but this does not mean that the glory will continue forever. In some respects, all airlines are facing problems. Made worse by the recent boom.”

Yang Cheng asked, "For example?"

The director said sarcastically, "I heard that Delta Air Lines is going through a wave of acquisition trough, and the acquisition of Alitalia failed."

Yang Cheng laughed, "When did the failure of an acquisition become a low point? Didn't you think that Delta Air Lines had just acquired Korean Air before you said this?

It is the shipping hub of Northeast Asia and the flag carrier of South Korea. Its positive significance to Delta Air Lines is no less than that of Alitalia, no, no, far more than Alitalia.

In addition, I will tell you another news: Air Berlin is about to declare bankruptcy, and Delta Air Lines will participate in the bid for the assets of Air Berlin, which is an airline with a quarter of the share in Germany.

It is more conducive to our layout in the European low-cost aviation field. "

The director's sidekick retorted, "Well, even if the acquisition is not a big problem as you said, what about the employees? If you acquire Air Berlin, you will definitely be required to accept all its employees. How many are there? More than 8,000, almost 10,000, right?

You must know that Delta Air Lines now has more than 80,000 and close to 90,000 employees worldwide, and its expenditure costs are still growing at an annual rate of about 3%.

Now that we have rashly added nearly 10,000 employees, can we afford this cost? "

Before Yang Cheng could speak, the director who spoke at the beginning said, "I have to remind you that according to the information we received, Southwest Airlines employees refused to sign the labor contract. Some people said that their compensation was not related to the performance of the aviation industry. Mismatch.

Federal regulators have launched two separate investigations into whether the largest airlines violated competition rules.

Once this news comes out, those shareholders and investors who are worried about whether the airlines can continue their excellent performance will inevitably sell their stocks. Do we need to set aside some cash to resist this wave of crisis? "

Yang Cheng had to admit that the level of trouble caused by these directors was still very high. At least they could tell some real facts. Yes, the airline's operational performance may have reached the best level in aviation history, but compared with At the same time, airlines are also under pressure from many aspects.

Airlines have benefited from years of restructuring and consolidation in the industry, coupled with management's greater focus on profitability, falling oil prices and other factors.

Fuel costs have also dropped from airlines' No. 1 cost to No. 2 after labor costs.

This has also caused major companies with good financial conditions to announce large-scale stock buyback plans and are currently repairing their balance sheets and investing in their products.

Aircraft load factors are also higher than ever, with air travel expected to reach record levels next summer.

However, while airline costs have fallen sharply, boosting profits, falling ticket prices have eroded airline unit revenue, which measures how much each passenger makes per mile flown.

This is also an indicator that investors, including Wall Street, pay most attention to. Profits are indeed growing, but the unit revenue of airlines has fallen sharply. This is a hidden danger, causing investors to suspect that the market is about to usher in an inflection point.

Once these investors get more evidence to confirm their suspicions, a crazy sell-off is about to happen.

From this perspective, the directors’ doubts are justified.

In the eyes of senior executives of Delta Air Lines, including Yang Cheng, and even insiders in the entire industry, this is a normal phenomenon. Gradually reducing expenditure costs have pushed up profits, so it is imperative to take the opportunity to sort out the company's assets and liabilities. Yes, but at the same time considerable effort must be spent to maintain employee motivation.

Spending US$2 billion to buy the loyalty of employees is completely worth it in the eyes of senior management. It is better than companies that are facing a wave of employee turnover, right?

As for the dissatisfaction of small companies, large companies will not take it seriously at all. This is the ecological cycle. If your small company is not strong enough to sustain it, don't blame your employees for changing jobs and leaving.

Of course, the directors are worried that Delta Airlines actually has internal plans. The financial department has already flowed out sufficient operating cash flow. This 2 billion dividend was decided after fully considering all possible dangers. The directors Thinking too much.

But Yang Cheng also knew that these reasons just now were just excuses deliberately found by the directors. The real reason was just like what he analyzed with his father last night, he wanted to use Delta Airlines as his own back garden.

Finally, someone couldn't help but showed an ugly face, "Jason, you must be clear about your position. You are the director representative of Far Mountain Capital assigned to Delta Airlines. Before making any decision, you should first consider Far Mountain Capital." Interests."

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