How much does it cost to buy an airline?

For Longjiang 188bet game, the smallest private airline in China，At least 300 million yuan is enough。

Under the new coronavirus epidemic，The civil aviation industry suffered the most severe impact since World War II。Around the world，188bet game have grounded a large number of planes，United States、Many 188bet game in Europe went bankrupt；China is no exception，Some parts are small、Private 188bet game with weak financial strength are under greater pressure，Facing mergers and acquisitions，Even a disaster that was auctioned。

Recently，An auction announcement on the China Bidi Bidding Network shows，Longjiang 188bet game, which owns five aircraft, will be auctioned，Starting price 3.200 million yuan，First auction ends on September 30th。Longjiang 188bet game is headquartered in Heilongjiang，Successful first flight in 2017，Registered capital 800 million yuan。

“I didn’t expect that my old club would become a hot search topic in this way”，A former employee of Longjiang 188bet game lamented about traveling as a passenger。The employee disclosed，The leader said last year，Longjiang 188bet game has completed financing with a financial company and an insurance company，“There will be no more financial difficulties，Employees please rest assured”。But the epidemic came suddenly in 2020，Longjiang 188bet game, which had been poorly managed for a long time, finally collapsed。

Although the auction information is a bit sudden，Some people in the industry commented on the trip，Longjiang 188bet game was established in 2017，With the scale and transportation capacity of 3 Airbus aircraft，“It’s a miracle that we can survive this year，The impact of the epidemic is just the straw that breaks the camel’s back。Small in scale，Two second-hand aircraft purchased in succession require maintenance costs，Long-term lack of high-quality routes and airline brands，It’s almost like ‘you can get whatever you want’。”

Not just small 188bet game，Air China (601111.SH/00753.HK）、China Eastern 188bet game (600115.SH/00670.HK/NYSE:CEA）、China Southern 188bet game (600029.SH/01055.HK/NYSE:ZNH) It’s not easy to wait for the three major 188bet game。The recently released semi-annual report shows，The total losses of the three major 188bet game exceed 26 billion yuan，Twice the profit of last year。

Major domestic 188bet game are actively helping themselves with the support of the government，Launching services such as "Fly as You Want"，There is still capital to take off again；But the long-term operation is not good、Small and medium-sized 188bet game with only one breath remaining，But it is difficult to survive the spring of civil aviation recovery。

Small and medium-sized 188bet game have been in operational distress for a long time, and the epidemic has made the situation worse

Civil aviation industry is heavy on assets、High debt、High cost、The problem of low returns，Exposed 188bet game face of the industry’s “black swan” in 2020。

According to statistics，More than 20 188bet game have gone bankrupt globally this year，IATA forecast，Global aviation demand may take 5 years to return to pre-epidemic levels。grounded due to epidemic、Passenger volume plummeted、Significant drop in revenue，The three major 188bet game with strong financial resources can still wait for a turnaround，Small scale of operation、Small and medium-sized 188bet game with huge cash flow pressure are already struggling。

Recently，The Intermediate People's Court of Harbin City, Heilongjiang Province issued an announcement on the value of 98% of Longjiang 188bet game Co., Ltd.'s equity corresponding to part of the shareholders' equity (first auction)，Meaning that this private airline was liquidated、Change of ownership，Whether it can take off again is still unknown。

The customer service staff of Longjiang 188bet game told Traveler，I had no idea about the company entering the auction stage before，But there is currently no impact on ticket purchases and normal flight departures。A traveler also noticed this，This month Longjiang 188bet game also launched Harbin-Xiamen、Two new routes from Harbin to Nanjing。

Longjiang 188bet game is the first passenger and cargo airline headquartered in Heilongjiang Province，Established by Harbin Xiangyu Gold Products Sales Co., Ltd. with an investment of RMB 800 million，Accounting for 100% of registered capital，It has a total of 3 A320 aircraft and 2 A321 aircraft。

It’s worth noting，Among the five aircraft of Longjiang 188bet game，There are two second-hand A320 aircraft that were just introduced in June and July this year - and the fleet size of China Southern 188bet game, the largest airline in China and even Asia, has exceeded 800 aircraft。

Court auction announcement display，Longjiang 188bet game’ current total assets are 12.300 million yuan、Total liabilities are 8.200 million yuan，The asset-liability ratio is about 66.7%。The assessed value announced by the court is 4.100 million yuan，The starting price is 3.300 million yuan，Deposit 66 million yuan，Price increase of RMB 500,000。

What the above-mentioned industry insiders said about Travel Yike，The two shareholders of Longjiang 188bet game are outsiders，Their funds are a drop in the bucket in the face of huge demand，Maybe end with auction、Reducing losses is the best outcome at present - after all, the plane is rented second-hand，High-quality routes do not exist，The operating system is in danger，The only “selling point” left is the airline license，How much can be recovered。

Longjiang 188bet game’ financial problems have been showing signs since last year。2019，Due to the leasing dispute with China Aircraft Leasing Group Holdings Co., Ltd.，Longjiang 188bet game was ordered to return equity investment 5.1.2 billion yuan，Interest payment of 4.65 million yuan。Due to failure to perform relevant payment obligations，Zhang Yuming, the legal person of Longjiang 188bet game Co., Ltd., has been listed as the person subject to execution three times。

“It is rare for an airline to be auctioned。"The industry insider told Trip.com，After the civil aviation industry transitioned from military to civilian in the 1980s，From the perspective of acquisition，Almost all are normal integrations of state-owned 188bet game merging private companies，Private 188bet game become state-owned，But it is rare for public transport aviation to be auctioned。”

Before Longjiang 188bet game，Early August，Ruili 188bet game based in Yunnan signed an equity transfer framework agreement with Wuxi Transportation Group of Jiangsu Province，Ruili 188bet game’ major shareholder Jingcheng Group hopes to sell its controlling stake。August 31，A source close to Ruili 188bet game told Trip.com，Various acquisitions are currently in progress。

Similar to Longjiang 188bet game，Ruili 188bet game is also a private airline、Fewer aircraft、There were also financial disputes before。

Ruili 188bet game started flying in May 2014，It is the first local private airline in Yunnan。As of the end of August 2020，operating 20 aircraft in total，75 routes，Route network covers 47 domestic and foreign navigation cities。Among the 6 existing base 188bet game in Yunnan market，Ruili 188bet game ranks fifth in market share。2019，Ruili 188bet game has also been sued in court many times due to huge debt disputes。

Yu Zhanfu, a global partner of Roland Berger Management Consulting, analyzed the travel issues，Small civil aviation companies have lower ability to withstand stress，It is difficult to obtain support 188bet game face of extreme industry shocks，Due to small scale、There is more room for improvement 188bet game professionalism of operations，It is difficult to obtain direct financial subsidies from the central and local governments，It is also difficult to obtain a bank loan。In short，Small civil aviation companies may be the first to fall。

Many industry insiders told Trip.com，Local governments and state-owned capital are most likely to take over civil aviation companies，If the auction goes well，Longjiang 188bet game after changing its name，Will take off again from a city with aviation dreams。

The three major 188bet game lost more than 26 billion in the first half of the year，“Fly as you wish” cannot drive performance

Behind the auction of Longjiang 188bet game，Reflects the current situation in which the civil aviation industry is in deep trouble，Not only small 188bet game，The three major 188bet game are also struggling to survive。

Loss 94 each in the first half of this year.4.1 billion yuan、85.4.2 billion yuan、81.7.9 billion yuan，This is Air China、China Eastern 188bet game、China Southern 188bet game recently handed over its semi-annual report report - profits that were all positive last year turned negative this year，Total losses exceed 26 billion yuan。Civil Aviation Administration of China Statistics，The entire first half of the year，The industry-wide loss reached 740.700 million yuan。

This huge loss is far greater than before。2008，At that time, due to the continued pessimism of the global economy，The three major 188bet game suffered huge losses for the first time，Air China、China Eastern 188bet game、China Southern 188bet game’ full-year non-net losses were 26.7.1 billion yuan、82.7.8 billion yuan、57.2.8 billion yuan，But the astronomical numbers at that time，Only about half of the current half-year loss。

In terms of income，Reduced transportation capacity investment、Load factor decreased、Decrease in income level, etc.，These are the main reasons for the decrease in airline revenue。

Take Air 188bet game as an example，Available seat kilometers in the first half of 2020 were 53 lower than the same period last year.74%，Transportation capacity investment has been significantly reduced，It’s hard for a clever woman to make a meal without rice，Reduction in revenue is inevitable。

At the same time，Air 188bet game’s passenger load factor from January to June 2019 was 80.99% dropped to 67 from January to June this year.45%，Average passenger kilometers revenue also increased from 0.5214 yuan fell back to 0.5189 yuan。Average revenue per passenger kilometer is the revenue an airline brings from flying one kilometer for one passenger，Reflects average fare levels and profitability。

The reduction in transportation capacity and passenger load factor caused by the epidemic is a fact visible to the naked eye，But the decline in average passenger kilometers revenue is a phenomenon that deserves more attention，Reflects the loss of airline profitability。Li Hanming, founder of aviation consulting company Li & Li, explained to Trip.com，Because there are not many people flying，188bet game generally have discounts and promotions，The current average air ticket price is 6 in the past.50% off。

Li Hanming’s statistical discovery，The average revenue per kilometer of the three major 188bet game in 2019 was 0.68 yuan-0.73 yuan；First six months of 2020，Falled to 0.52 yuan-0.58 yuan；The post-epidemic recovery period from March to June 2020 is even lower，The average revenue per kilometer of the three major 188bet game is 0.44 yuan-0.Between 5 yuan。

From a cost perspective，Exchange losses caused by the depreciation of the RMB also have an impact on airline performance。All three major 188bet game stated，Because the exchange rate depreciated in the first half of the year 1.5%，Air China、China Eastern 188bet game、China Southern 188bet game’ exchange losses in the first half of the year were around 1 billion yuan，Affected net profit of about 400 million yuan。

Overall，188bet game’ losses in the second quarter were less than those in the first quarter。Statistical data from the Civil Aviation Administration of China，Second quarter of this year，All civil aviation suffered an overall loss of 342.500 million yuan，Loss reduced by 38% compared with the first quarter.500 million yuan。The industry lost 24.6 billion yuan in February，The largest single-month loss record in history。

China Southern 188bet game’ loss reduction trend is more obvious: first quarter、Loss of 5.3 billion yuan and 2.9 billion yuan respectively in the second quarter，Significant loss reduction of 2.4 billion yuan in the second quarter。To this，Li Hanming analyzed to Xingxingyike，This is because China Southern has the strongest domestic network among the three major 188bet game in China、The international line is the weakest，“Now the epidemic has paralyzed international flights，China Southern 188bet game dumps a burden，Air China and China Eastern 188bet game have one less profit point。”

Although China Eastern 188bet game’ “Fly as You Want” campaign launched on weekends has set off a marketing craze across the industry，Also received widespread attention from outside the civil aviation industry，But this activity that started on June 18 did not help China Eastern 188bet game’ semi-annual report performance to become better。Look at each quarter，China Eastern 188bet game first quarter、Revenue in the second quarter was 15.5 billion yuan and 9.7 billion yuan respectively，Decreased 49% and 66% year-on-year，The losses were NT.9 billion and NT.6 billion respectively，Loss increased in the second quarter。

According to Xingxingyike，China Eastern 188bet game’ “Fly on Weekends” has sold more than 100,000 units，Based on the unit price of 3322 yuan per set，This product can bring in more than 300 million yuan in cash income—compared to tens of billions of yuan in revenue every quarter，This product’s contribution to financial reporting is relatively limited。

Li Hanming also explained，China Eastern 188bet game has more international flights，Significant work reduction during the epidemic has led to a reduction in revenue，At the same time, the competition in the Shanghai market is fierce，Private 188bet game and high-speed rail are competing with China Eastern 188bet game for the market，Affected by the superposition of two factors，China Eastern 188bet game’ second quarter performance was slightly weaker。

There are still bright spots in the unoptimistic semi-annual report，i.e. freight revenue。China Southern 188bet game’ cargo and mail revenue in the first half of the year was 76.6.7 billion yuan，YoY increase of 73.89%。China Southern 188bet game said，Mainly due to freight demand caused by the epidemic，Especially due to the strong demand for international freight。Freight revenue has also contributed billions of yuan in revenue to Air China and China Eastern 188bet game。

After a difficult first half of the year，The civil aviation industry is gradually recovering。Learned from China Eastern 188bet game，As of the end of August，China Eastern 188bet game’ domestic flights average daily exceeds 2,400，Restored to more than 95% of pre-epidemic levels。

Broker Hua Chuang Transportation said it is optimistic about the future of the three major 188bet game，Research report thinks，The price-to-book ratios of the three companies are all at the bottom of history，The industry is gradually recovering，It is even expected that “the industry’s aircraft transport capacity will show a net withdrawal trend，If demand rebounds more than expected in the future，There may be industry elasticity driven by supply and demand mismatch。”

Looking ahead to the second half of the year，Because China’s aviation market is the first in the world to bottom out，The recovery and development trend is generally improving，188bet game believe it，The domestic aviation market will be the first to recover，Promote 188bet game to continue reducing losses。

*188bet game article comesSource: WeChat public account “行一客” (ID: carcaijing)，Author：Wang Jingyi, Liu Wanyuan，Original title: "You can buy an airline with at least 300 million，The situation 188bet game civil aviation industry is more difficult than imagined》.