Thanks to nearly 400 million in three years! The Northeast airline was put on the auction floor

category:Finance
 Thanks to nearly 400 million in three years! The Northeast airline was put on the auction floor


Wearing the aura of the first local private aviation company in Heilongjiang, Longjiang Airlines founded by Zhang Yuming has been attracting much attention in 2014. However, as a small and medium-sized airline company that has operated five aircraft, Longjiang Airlines has been in continuous loss since its establishment for six years, and has lost nearly 400 million yuan in three years of operation.

Photo source: photo web

The epidemic situation is the last straw that overcame Longjiang airlines. The manager of a domestic private aviation company told the reporter of daily economic news (micro signal: nbdnews) that Longjiang Airlines is in the current situation, which is caused by multiple factors such as market positioning, business model and business model.

For sale after two rounds of auction

According to the online auction transaction confirmation on November 25, Jiangsu aifang finally acquired part of the equity value project corresponding to 98% equity of Longjiang airlines with the transaction price of about 771 million yuan. Although it exceeded the previous evaluation price of 411 million yuan and the starting price of 330 million yuan, it was less than the first auction price of 806 million yuan.

Auction information image source: Jingdong auction screenshot

According to the industrial and commercial information, Jiangsu aifang is an investment consulting and management company established in 2015, belonging to the business service industry, with a registered capital of 10 million yuan, which is funded by three natural persons: Deng Rongrong, Yuan Fang and Cui Ningxian. On November 25, the reporter called Jiangsu aifang to try to get information, but did not get more information.

It is worth noting that this is not the first time that Longjiang Airlines has been photographed. As early as September 30, Shengda Jinye took Longjiang airlines for about 806 million yuan. It was thought that Longjiang aviations auction dust fell to the ground, but unexpectedly, because Shengda gold industry did not pay the full price within the time limit. For this reason, Shengda gold also lost 65.75 million yuan of deposit after winning the bid.

According to public information, Shengda gold was established in 2012 with a registered capital of 1 million yuan, and its business scope includes investment consulting, investment management and economic and trade consulting.

At the time of the first auction, there was also an episode. According to the times weekly and other media reports, Zhang Yuming, founder and former chairman of Longjiang airlines, once said that because the evaluation unit does not have the qualification and experience of air transport enterprise evaluation, and the evaluation results are seriously inconsistent with the actual situation, Longjiang Airlines was sold at a low price.. However, the reporter continued to try to contact Zhang Yuming and relevant parties for many days, but as of the time of publication, the above statement could not be confirmed.

Reporters found that Zhang Yuming and logistics boss Wei Hongjiang have a long history.

In 2019, founder Zhang Yuming withdrew from Yaxiang Airlines; in September of the same year, Fushan County Hangli Logistics Transportation Co., Ltd. (hereinafter referred to as Fushan logistics), whose chairman was Wei Hongjiang, became a new investor of Longjiang aviation.

As of August 31, 2019, the equity structure of Longjiang Airlines has been changed many times. The current equity structure is 61% owned by Yaxiang airlines, 37% by Xiangyu company and 1% by two natural person shareholders respectively. Fushan logistics holds 80% equity of AVIC. Weihongjiang, the major shareholder of Fushan logistics, is the actual controller of Longjiang aviation.

In addition, Wei Hongjiang is a major shareholder of Beijing Shengda Ruifeng investment management company (hereinafter referred to as Shengda Ruifeng), which was the original shareholder of Shengda gold. In other words, Shengda gold, which Wei Hongjiang once took a stake in, tried to bid for Longjiang aviation, which weihongjiang now controls.

In the second auction, Yaxiang, the major shareholder of Longjiang airlines, was listed as the preemptive right holder, while Wei Hongjiang was the actual controller behind it.

It can be seen that Wei Hongjiang, the actual controller, was associated with the two auctions. The focus of attention is why Shengda gold has to participate in the auction even though it can not pay the balance?

The reporter repeatedly called the companys relevant registration phone number, trying to understand the situation, but they were not connected.

In response, an aviation researcher told the daily economic news (micro signal: nbdnews) reporter that this may be a strategic consideration. Although it is unable to raise funds to auction the equity, it will extend the time of equity auction once again, and let more investors pay attention to the auction, and seek more opportunities for the future development of Longjiang airlines.

Since its establishment, it has never made any profit and has accumulated a loss of nearly 400 million yuan

At the beginning of its establishment, Longjiang aviation has been paid close attention. At that time, HNA had signed a strategic agreement with Heilongjiang Province to establish Heilongjiang airlines, but it was not clear. This made Longjiang aviation the first and only local airline in Heilongjiang.

In July 2014, Longjiang Airlines was approved by the Civil Aviation Administration of China. In September of the same year, Longjiang Airlines was officially registered in the Xiangfang District Administration for Industry and Commerce of Harbin city. The aviation company was established with an investment of 800 million yuan by Harbin Xiangyu gold products Sales Co., Ltd. (hereinafter referred to as Xiangyu company) and related companies controlled by Zhang Yuming. On February 10, 2017, Longjiang Airlines successfully launched its first flight and started production and operation.

This ill fated private airlines, the performance situation is also very bleak.

According to the evaluation report, the airline company lost nearly 400 million yuan in more than three years from 2016 to August 2019, and has never made an annual profit. Among them, the revenue in 2016 was 0 yuan, with a loss of about 103 million yuan; in 2017, the revenue was 108 million yuan, with a loss of 41.22 million yuan; in 2018, the revenue was 156 million yuan, with a loss of 162 million yuan; in the first eight months of 2019, the revenue was 112 million yuan, with a loss of 61.81 million yuan.

In addition to the poor performance, Longjiang airlines in the operation of the performance is not satisfactory.

From 2018 to 2019, Longjiang Airlines was criticized dozens of times, and the application for new routes was limited because it failed to meet the requirements of the four indicators of arrival flight normal rate, departure flight normal rate, flight normal rate and abnormal flight rate caused by the companys own reasons in 2017 flight normal assessment index and restrictive measures issued by CAAC.

In addition, the cancellation of flights without reason, the lack of humanized after-sales service, the unreasonable visa change system, and the unprofessional flight attendants also make passengers complain about Longjiang airlines.

There are many regional airports in Heilongjiang Province, including more than ten airports in Harbin, Qiqihar, Daqing, Mudanjiang, Jixi and Fuyuan, which are very suitable for the development of regional air transportation. However, Longjiang Airlines is a trunk line airline, and the markets of Heilongjiang and the three eastern provinces are greatly affected by high-speed rail. It is necessary to consider whether it is necessary to localize the trunk line airlines and what the demand is. A private aviation department internal management personnel said to reporters.

Combing the history of Longjiang airlines, it is not difficult to find that compared with other state-owned airlines or large civil aviation companies, Longjiang Airlines is at a disadvantage in terms of total assets, number of aircraft and number of routes, so it is facing more tests. As of the benchmark date, there are about 410 employees.

Data comparison source of airlines: Heilongjiang waltai Asset Appraisal Co., Ltd

From the operational level, the main operation base of Longjiang aviation is located in Harbin Taiping International Airport. Since its establishment, six routes have been opened successively: Harbin Hefei Zhuhai, Harbin Nanchang, Harbin Luoyang Beihai, Harbin Chongqing, Harbin Yinchuan Chongqing, Harbin Yinchuan Jiayuguan, all of which are trunk lines.

According to the evaluation report, previously, Longjiang Airlines mentioned that it would set up bases and sub hubs in Zhuhai, Hefei and Chongqing according to the development and strategic cooperation arrangements.

The current situation may also have something to do with investors ideas. For the current situation of Longjiang airlines, domestic aviation department researchers are very sorry, he told reporters, gold products sales is a fast turnover industry, but the air transport industry has a long capital flow cycle and needs to inject more capital. The current situation of Longjiang airlines may be related to the operation thinking and business model of investors.

Under the epidemic situation, it is very difficult for airlines with a weak foundation to carry on. At the same time, the above people said that in addition to the impact of the business model, the current predicament of Longjiang Airlines is also closely related to the general environment.

However, up to now, Longjiang Airlines is still working hard.

At present, Longjiang Airlines has operated a total of 5 aircraft. In April and June 2016, Longjiang Airlines successively introduced two Airbus A321 aircraft. Up to now, Longjiang Airlines has two A321 aircraft and three A320 aircraft, of which two second-hand A320 aircraft have just been introduced in June and July 2020.

The official account of Longjiang airlines and WeChat public are still being updated. According to the official website, Longjiang Airlines is still in normal operation, tickets can be reserved on the third party platform or official website, and the flight is in normal operation; at the end of October, Longjiang Airlines participated in the third staff basketball competition of northeast civil aviation, which did not seem to be affected by the auction storm; on November 7, Longjiang Airlines opened a new route from Harbin to Yinchuan to Jiayuguan.

Scarce licenses are facing a downturn,

Will local state-owned assets eventually take over?

In fact, the story of Longjiang Airlines is also a microcosm of the fate change of small and medium-sized airlines under the epidemic situation.

At the beginning of the year, the outbreak of the epidemic accelerated the industry to enter the ice age. Small and medium-sized airlines with limited capital scale went from bad to worse when the industry went down.

In the face of the changing market environment, private airlines have changed their owners one after another, and local governments frequently throw olive branches.

Civil aviation expert Lin Zhijie told reporters that the civil aviation industry has been a capital intensive and resource intensive industry. Moreover, it is particularly affected by external factors, such as the fluctuation of oil price and exchange rate, including the epidemic, which has a great impact on the whole civil aviation industry. The scale of these private airlines is small, and it is difficult to borrow money. It was very difficult before the epidemic and it was difficult to persist.

For local governments, local airlines can open up commercial routes, international intercontinental routes, and improve the local business environment. This has a particularly obvious driving effect on the economy, and has been widely recognized by local governments. Therefore, many local governments want to buy one or build their own local airlines. However, due to the restrictions of CAAC on the license, it is the only choice to purchase private airlines.

Qi Qi, an expert in civil aviation, said to reporters that the aviation department needs sustained cash flow to support the industry. The epidemic situation has led to a sharp drop in air travel, and air tickets can not be sold. High operating costs have to be paid to maintain the situation of tight cash flow. At the same time, the lack of low-cost financing ability of private enterprises is the biggest problem of private airlines.

There are also some optimists about the changes after the crisis. The flight data service company Feiyou technology believes that capacity reduction is becoming the mainstream trend in the aviation industry. Bankruptcy and reorganization will reduce the companys debt and narrow the gap between supply and demand, which will indeed bring new life to airlines.

At present, although Longjiang Airlines auction party has surfaced. But its future fate and prospects are still unknown. A civil aviation practitioner told reporters that in the context of the tightening of civil aviation license for several years, Longjiang airlines CCAR-121 air operator operation certificate this civil aviation license may become its new trump card.

According to the evaluation report, as the last airline in China to hold 121 aviation operation license, its route can be retained in a few years. If the domestic emerging Airlines apply again, they must start from the regional line or cargo. For example, the branch line must have 30 regional airliners or 20 cargo aircraft, which can be converted to large 121 flight license after years of operation.

In addition, due to the huge capital of registered airlines and the high requirements for professional operation and management, it is difficult to establish airlines directly. The acquisition of existing private airlines has become an efficient choice for local governments. Provinces that have not yet owned local airlines are likely to take over in the future. However, the embarrassing situation is that although the number of licenses is scarce, the current market demand is low, and whether anyone is willing to take over in the special environment still depends on the market. A private aviation department insider told reporters that there are still new opportunities for Longjiang airlines in the follow-up, which mainly depends on the new strategic investors and the change of operation mode. At present, there are many regional airlines in Heilongjiang Province, and the demand for localized Airlines is not strong, so it is not necessary to take over the offer. In the future, the fate of Longjiang airlines may be similar to that of laterite airlines, and it is necessary to seek for state-owned assets from other places. Source: Chen Hequn, editor in charge of daily economic news_ NB12679

In addition, due to the huge capital of registered airlines and the high requirements for professional operation and management, it is difficult to establish airlines directly. The acquisition of existing private airlines has become an efficient choice for local governments. Provinces that have not yet owned local airlines are likely to take over in the future. However, the embarrassing situation is that although the number of licenses is scarce, the current market demand is low, and whether anyone is willing to take over in the special environment still depends on the market.

A private aviation department insider told reporters that there are still new opportunities for Longjiang airlines in the follow-up, which mainly depends on the new strategic investors and the change of operation mode. At present, there are many regional airlines in Heilongjiang Province, and the demand for localized Airlines is not strong, so it is not necessary to take over the offer. In the future, the fate of Longjiang airlines may be similar to that of laterite airlines, and it is necessary to seek for state-owned assets from other places.