Hong Kong's new giants

Chapter 718 [Time Aviation]

In mid-November, Lin Zuhui took a private jet to the capital of the Kingdom of Ireland 'Dublin' to attend the unveiling ceremony of 'Time Air'.

Why is 'Dublin' the headquarters of 'Time Air'?
This is because the development of the Irish aircraft leasing market has gone through about 30 years. After continuous improvement and enrichment, a complete supporting system has been established in terms of taxation, law, financing channels and professional services, forming a mechanism to promote the development of the aircraft leasing industry. With its unique advantages, it has become one of the centers of the global aircraft leasing industry.

The Irish aircraft leasing market is relatively mature and has four characteristics:

[-]. At present, the global aircraft leasing business is relatively concentrated in a few large leasing companies, and many of these companies are headquartered in Dublin.

[-]. Ireland's unique advantages in supporting the development of the aircraft leasing industry can be summarized in two aspects: tax incentives and other supporting policies: low interest rates and low tax rates; meanwhile, Ireland's aircraft maintenance industry is very developed, with thousands of aircraft maintenance workers.Just imagine, an airplane is not a building. The leasing company leases the airplane to Huaxia customers, but when it comes to maintenance, it can save money and effort by driving the airplane to Ireland for maintenance.

[-]. The advantages in the external environment mainly include: the application of the British and American legal systems, a good policy environment for attracting external investment, a good capital market and rich financing channels, a developed and mature GEM trading market, and convenient and smooth international market connections. We have established a wide range of cooperation opportunities with various local companies and companies in the same industry, and have well-educated labor forces with the ability to provide professional services.

Coupled with the on-the-spot investigation by Yuan Tianfan, Morris and others, the Government of the Kingdom of Ireland gave the most sincere conditions for attracting investment.

On the day of the unveiling, Irish Prime Minister Bertie attended the ceremony. The highest official in Ireland, he himself pays more attention to relations with China, coupled with Lin Zuhui's influence in the world, and the huge asset value of New Times Group, he will not hesitate Give 'Time Aviation' a lot of support.

Bertie and Lin Zuhui each gave speeches at the ceremony, followed by speeches by Morris, president of Times Shipping, and Ahern, president of Times Airlines. After some operations, the following guests and the media were also very excited.

Times Air, a subsidiary of Times Shipping, belongs to one of the core businesses of 'marine/aircraft'; and Times Airlines stated that it will be committed to developing into one of the world's top aircraft leasing companies.

Undoubtedly, the guests and the media are convinced that the boss Lin Zuhui has always been the overlord of various industries, a natural king.

After the unveiling ceremony, the organizers prepared a reception.

Lin Zuhui and others, together with Bertie and others from the Irish government, held wine glasses and talked together.

Bertie said friendlyly: "Thank you Mr. Lin for your trust in Ireland and choosing Dublin as the headquarters of 'Times Aviation'. As the government, we will definitely give full support to all aspects and ensure a good investment environment."

The name of a person, the shadow of a tree, Lin Zuhui is a big signboard.As Dublin is committed to becoming the dominant position in global aircraft leasing, it is naturally very eager for Lin Zuhui to choose 'Dublin'.

Lin Zuhui raised his glass to signal, and said: "Prime Minister Bertie, we chose Dublin as the headquarters because of the environment and sincerity here. I believe this is a win-win choice. The president and most of the management of Times Airlines, They are all from Ireland and I trust these colleagues."

Ahern and other management on the side immediately enjoyed it very much.

In fact, Lin Zuhui is very good at "using barbarians to control barbarians". Many of his executives are foreigners, such as the president of Langham Hotel, the president of Times Shipping, etc. There are countless foreign executives.

New Times Group has a group photo of the management, and the foreign executives in the photo account for half of the number.

Bod nodded, and then asked curiously: "Time Airlines has now been established, how much money do you plan to invest in buying planes?"

Lin Zuhui said: "We have injected US$30 billion into Times Aviation to purchase aircraft or acquire aircraft leasing companies; at the same time, we will adopt a loan model, so the total investment will not be less than US$50 billion."

What he said was very conservative. In fact, the follow-up is far more than investment.

In aircraft leasing companies, the average cost of an aircraft is between 3 million and 4 million Hong Kong dollars, mainly narrow-body aircraft, supplemented by wide-body aircraft.In the previous life, AerCap, the world's largest aircraft leasing company, managed and owned more than 1100 aircraft with an asset value of nearly US$600 billion.

Why did Lin Zuhui invest in the aircraft leasing industry?
First of all, this is a cyclical industry, and any industry with strong cyclicality is suitable for Lin Zuhui to enter.He is now buying bottoms in the aircraft leasing industry. Before Lehman broke out, he did a wave of T (sell part of the aircraft ownership), and then made a big deal of bottoms, and did another wave of big Ts before 2020.According to this method of operation, the original rate of return of more than 9% can be turned into a rate of return of more than 15% by him.

Secondly, in the entire aircraft industry chain, aircraft leasing companies have the highest rate of return of 9%, followed by aircraft manufacturing at 5%, and finally airlines at only 3%.Since Lin Zuhui knows that the aircraft leasing industry will be the future trend, why not enter it? He has a historical advantage and can enter this industry 13 years earlier than Li Chaoren and Buffett. This is the biggest advantage.

Finally, the prospect of aircraft leasing companies is the best. Regardless of Lehman and Yiqing, aircraft leasing is guaranteed to make money, because 70% of the aircraft of global airlines are leased, which is the market demand.The reason why airlines are willing to lease aircraft is because the cycle of the aviation industry is too strong, buying aircraft is prone to financial bankruptcy, and the demand suddenly increases, airlines may not be able to afford the money to buy aircraft for a while.

On the whole, this industry (aircraft leasing) is a big fat meat. In the later generations, several major banks in the mainland, Citigroup, Standard Chartered and other financial institutions entered the "aircraft leasing" industry one after another. This is the best portrayal.

Bod was very happy when he heard that it was no less than 50 billion US dollars, and became even more enthusiastic.

"Mr. Lin is worthy of being a businessman of the times, and his investment is huge, which is admirable. But here, I have a personal question, I don't know if I can ask it?" Bod said seriously with the desire for knowledge revealed in his eyes.

Lin Zuhui said frankly: "Of course, Prime Minister Bertie, please speak!"

Bertie asked curiously: "The aviation industry is the hardest-hit area in the world affected by the September 911 incident, but why did Mr. Lin choose to enter this industry at this time?"

Lin Zuhui said with a smile: "It may take a year to overcome fear, it may take two years, but it will never exceed three years."

There is no need to speak too clearly!

Bod and the others nodded one after another, showing expressions of admiration.

They understand what Lin Zuhui is saying. The reason why the aviation industry is affected is because passengers are now afraid. Of course, there are also reasons for the poor tourism industry and the economy, but people still have fear.But as time goes on, this fear will surely be forgotten, and the aviation industry will recover by then.

Bod said in admiration: "I have read many reports of Mr. Lin, and know that you are a businessman who is very good at grasping the timing. Now it seems that this is indeed the case. Of course, many people may understand the truth just now, but they don't Guts, and not enough cash flow."

Indeed, many people know that it is time to buy the bottom, but when is the bottom?How long will this bottom last?Can I survive the cold winter?

These reasons all restrict those who want to buy the bottom.

Therefore, on the contrary, people prefer to chase high, because they think that chasing high means that they can make money immediately.

The unveiling of 'Era Air' was a big hit in Ireland, the aircraft leasing industry.

However, these were not considered by Lin Zuhui. After the unveiling ceremony, he held a management meeting of Times Airlines. In addition to the management of Times Airlines, Morris and Yuan Tianfan, as the president and director of the parent company Times Airlines, attended the meeting.

Lin Zuhui first asked: "The next step is to purchase aircraft and start business, so how is the current market? Is it difficult to find an aircraft?"

President Ahern immediately said: "The current market is at a time when it is bleak, and it is easy to buy second-hand aircraft or brand-new aircraft that have not been used for a long time. As for business, although the aviation industry in Europe and the United States has been greatly affected, Asia, as a supermarket, especially Huaxia, so we are very confident."

Ahern missed one point, that is, if he wants to enter the Huaxia market, he must have an airworthiness certificate. Without background and connections, there will be some troubles.Of course, this is no problem for Lin Zuhui's industry.

Lin Zuhui nodded and said: "We can buy those small and medium-sized aircraft leasing companies in a package, and we can also learn from their experience; at the same time, we can carry out three directions at the same time as purchasing newer second-hand mobile phones and ordering new airliners. Within a year, Era Airlines will become the world's top five aircraft leasing companies."

Ahern immediately sensed the boss's ambitions. As expected, he wanted to become the dominant player in any field, just as the legend said.

"No problem, we are very confident!" Ahern said confidently.

A large part of his confidence comes from Lin Zuhui's infection!

In fact, the aircraft leasing industry is not a high-tech field, it will become an accessory of financial institutions; the top 50 aircraft leasing companies in the world in later generations are all affiliated companies of private equity, banks, and large enterprises.

The technical threshold is not high!
The headquarters of the aircraft leasing industry are almost always located in areas with low interest rates and low taxes, while the leasing locations are areas with high interest rates.Taking advantage of this interest rate difference is equivalent to earning an extra sum of money.

Next, everyone discussed and Lin Zuhui listened.

Don't think that he doesn't understand, in fact, he will buy a lot of books before doing a line, and quickly complete the introduction; after that, he will also seek professional advice, and he will soon become a "paper conductor".

Because of his high brain memory, IQ, etc., he can often achieve the level of entering the industry quickly.

This made these high-level executives admire Lin Zuhui's attitude towards work, which affected the attitude of all the management under Lin Zuhui's management. After all, it is impossible for a studious and all-round boss like "Tan Shang" to be lazy.

In the end, Lin Zuhui concluded: "Within two years, Times Aviation will invest more than 100 billion US dollars in this industry. Everyone should seize the opportunity to buy the most valuable things with the least amount of money."

This is the first time he revealed the real investment scale, and everyone couldn't help being a little shocked. This boss is really generous.

Of course, it is impossible to use all the 100 billion US dollars in cash, and appropriate loans are affirmative.

As for high-leverage investment, it is impossible for Lin Zuhui to do it. After all, he also has to learn from Li Chaoren—steadiness without forgetting development, and development without forgetting stability.

(End of this chapter)