Rebirth 79: I opened a bank in the United States

Chapter 447 Airport Operation Income
"I remember, but Mr. Paulson. I don't know about airport operations either."

Carter didn't directly say that he didn't have enough money.

The lack of funds on the books at the moment is actually a small problem. I still have a big killer like ABS in my hand!It is relatively simple to raise funds, but it is not possible, relying on Fidelity's relationship, it is not impossible to use debt financing
Although his debt scale is already very high, if the investment in the airport construction project can bring him sufficient returns, then Carter doesn't mind doing it.Especially at this moment, when the smell of New Haven's great construction period is faintly smelling
I was wondering how to get involved in this big construction bonus. At this time, I heard the topic of investing in the airport, and Carter became interested.Before making a decision, you must first understand the role of the airport and its profit model!

"It's okay if you don't understand. It can be outsourced to the airport management company. The buyout system or sharing system can be used. At first, it may be a little bit of a loss, because the number of flights at the airport is insufficient, and the sharing income is very low. They may ask for a one-time payment. Buy out the operating services for a certain period of time.”

"Wait a minute, let me do the math for you. There must be basic air traffic controllers, and then ground service. Gulfstream can help me with the maintenance. First, you should be able to find someone to do the security check yourself, as well as luggage transportation. Except for air traffic control that needs them to send people over, other airport departments only need them to send one or two managers, or technical backbones. In this case, the package price should be around 40 US dollars a year."

"Including four air traffic control commanders, operators of deicing, bleed air and other equipment, etc., the total number of these professional technical service personnel should be around 12 to 20. For the on-site maintenance, we can temporarily use our Gulfstream personnel , For the first two years, I decided to provide your airport with basic aircraft inspection services for free, and if repairs and maintenance are required, then how about a fee per use?"

"What are the main sources of revenue for the airport? I just heard people say that it mainly focuses on the use of airport services, parking, and take-off and landing fees. Is that true?"

Carter glanced at Smith beside him, and asked.

"Yes, there is another source of fees paid by passengers. For example, security check fees, car entry fees, etc., or the shuttle bus service provided by you, is also charged. Compared with commercial airports, which are mainly charged by airlines, small Most of the general aviation operation airports need to be borne by customers themselves.”

"Taking Gulfstream as an example, suppose we transfer the operating airport and test flight airport to your side. According to the negotiated price, usually our parking fee is about 400 US dollars per aircraft per day, and the inventory backlog before delivery is generally in three months. If there are up to five planes, then it is my Gulfstream family, which can bring you no less than $[-] in annual profits just by shutting down, which is basically equivalent to the cost of an external management company."

"Take-off and landing fees and air traffic control command fees, this small aircraft usually has a meager profit. A single flight, that is, a take-off or landing, can cost about 800-1000 US dollars. As for other services, aviation fuel, aviation food, guidance, De-icing, ground air supply, ground power supply, etc., these are not easy to determine."

"In short, whether an airport is profitable or not is closely related to the local development. If the local economy is prosperous, there are more business travel teams coming and going, and there are more rich people, the airport will naturally be able to make a lot of money. Bar?"

"Okay, I see. I'll take a look at the specifics. Let's go back to Georgia to visit you on Thanksgiving. We'll talk about it later!"

"You don't plan to build another airport just for this plane, do you?!"

Smith, who had listened to Carter's call the whole time, put down the documents in his hand at the right time, and looked at Carter strangely.

"Of course not. I'm not Biao. It's just business. It doesn't hurt to know a little bit more. Georgia can't do it. New Haven. I'm going to have a look."

"New Haven Airport is not a good choice. Next door is Boston and New York. Commercial flights are actually very sluggish. Except for American Airlines, which is a big business, it is still there, and Delta Air Lines is not admitting defeat. Going in offers a route to and from Cincinnati-Northern Kentucky. Loads are a problem! God knows how many more years they'll last"

After all, he is an investment banker in the secondary market, and he just opened his mouth about the business data of an airport in the neighboring state.Although Carter himself is aware of these situations, what is investment potential? !

"It is true that New Haven Airport, including its route, has not been profitable these years. But isn't this also an opportunity? Boston Logan Airport, or New York LaGuardia. Their benefits are good, but that also means that there is no one for me. What's the matter, isn't it?"

As the saying goes, "Others are fearful, I am greedy, others have small losses, I am bankrupt".
Cross it out!

After all, it's just an idea, a train of thought.As Paulson just said, the airport's revenue benefits are closely related to local development.If New Haven can develop, the benefits of this airport will definitely recover.

This year's big bear market is like the darkness before dawn
To be precise, the entire 80s was like the darkness before dawn.For example, the oil crisis in the early 90s, the stock market crash in the middle and late [-]s, etc. After entering the [-]s, have you heard of any major disasters in the United States? !

Carter never heard of it anyway
Think about the situation in front of you, the stock market bear!Money is shrinking, market consumption power is insufficient, and as bank deposits raise interest rates, residents' willingness to deposit is high.With less money circulating in the stock market, wouldn't there be less money circulating in the consumer goods market?
The funds flowing in the consumer goods market have decreased much faster than the stock market!The quantitative reduction of the Fed's balance sheet was transmitted into the daily consumer goods market almost immediately.That was still in the first half of the 80s, and Carter saw a real picture of the market slump in Atlanta and other places.As for the reduction of hot money in the stock market, it can only show that the bad situation is getting worse, so that some so-called high-net-worth people feel financial pressure.

Normally speaking, the reaction speed of the stock market and the transmission speed of the crisis are relatively slow!Especially in this market age dominated by individual investors.
The logic is simple: Who are the people who generally play the stock market?Even if they only invested a few hundred dollars or a few thousand dollars in small leeks, compared to many people who don't even have savings, they are basically well-off, right?Otherwise, how can there be spare money to throw in the stock market?

The anti-risk ability of this group of people is much, much stronger than those "Moonlight Clan"!When they feel that they seem to have no spare money to throw in the stock market, or have to withdraw the money invested in the stock market for living or saving, it basically means that the crisis has reached a fever pitch!

If more products cannot be sold, the profit decline of manufacturing enterprises will be more serious. Coupled with the sluggish stock market, the difficulty and cost of financing will increase significantly.In such an environment, the frequency and standard of business trips will be [-]% downgraded. If it is not necessary or even simply don’t travel, don’t run away, save some money
This is generally the case for corporate customers, but how much better can it be for individual customers?
Once the passenger flow decreases, the airline's profit will inevitably drop sharply!Even dive straight into the water!

There is no other reason: the cost is too high!
(End of this chapter)