What the hell is a private enterprise?

Chapter 687 Turbofan-Ramjet Combined Power
Lundon Exchange
Countless people crowded in front of the door, counting down with the second hand of the clock:

"Five, Four, Three, Two...One!!!!"

As the countdown reached zero, cheers erupted from the crowd. On the exchange's large screen, a thin line shot upwards as if it had teleported, showing no sign of stopping.

"OHHHHH!"

The atmosphere inside and outside the exchange was ignited simultaneously, and even the supervisors couldn't resist coming out to see the spectacle.

Royal announced its procurement contract with SG on Friday, but the exchange was unable to react as the news was not fully confirmed.

Until Saturday and Sunday, the media first began to investigate the background of SG Company, speculating that it was a combination of Saab and Gaijin. Then Saab took the initiative to reveal that it had established a joint venture aircraft manufacturing company with a registered capital of 500 billion.

Following this, the Civil Aviation Administration of China issued a new notice, mentioning the issuance of dual certificates for the C919 to Nansha Aircraft Manufacturing Company and announcing that Gaijin Airlines had passed the preliminary review and would officially begin operations on January 1, 2000.

This series of news items exploded like a bomb throughout the aviation market:
Rolls-Royce's order meant that the engine was available; the joint venture with Saab to establish a factory meant that the aircraft was available; the Civil Aviation Administration of China issuing the certificate of conformity and airworthiness certificate without even seeing the aircraft was unprecedented; and the establishment of Gaijin Aviation not only meant the emergence of the first civil airline, but also indirectly showed that Tang Wen was guaranteeing the source of orders for the manufactured aircraft!
The C919 is still just a concept, but everything from design to production to sales to operation has been arranged clearly. It is obviously a golden project with huge investment, national backing, advanced technology, and complete guarantees, just like the Y-10.

Rolls-Royce's engine orders are worth $60 billion, so the total value of the aircraft manufactured is at least $200 billion, which is at least 1000 C919s!

Boeing and Airbus were completely bewildered, unprepared for the sudden emergence of a strong competitor in the dismal aviation market, while the British aviation industry, represented by Rolls-Royce, was scrambling to find out and was overjoyed!

Rolls-Royce shares surged after the market opened on Monday, rising as much as 14% during the day before falling back 2% in the last hour to eventually stabilize at 12.1%.

During this process, the market value also surged from £37.2 billion to £45 billion, allowing investors to make a fortune.

Such an exaggerated surge has frightened many people. However, major banks in London are still raising their forecasts, after all, $60 billion is already higher than Rolls Royce's market value, and they believe the increase should be at least 30%.

This is not just a $60 billion order; it also means that Rolls-Royce is about to dominate the East Asian aviation market, and that the relationship between the UK and the East Asian countries will be relatively friendly for the next five years, which will also lead to a positive outlook for the economic recovery of the entire UK.

On Tuesday, the stock price fell by about 0.6 points after the market opened, but surged again by 7 points at noon, and closed at 5.4 points.

The slightly exaggerated comparison is mainly due to:

Kazimirz's plane arrived, and he requested a meeting with Blair.

……

"You're so desperate for money, you'll sell anything!"

These were Kazimirz's true feelings, but what he said aloud was:

"As a signatory to the IATR's restrictions on the import and export of sensitive technologies, Lunton should explain the Ro-Ro transactions within the association. If the technology is listed in the prohibited catalog, it should be stopped or a decision should be made after discussion within the IATR."

The six billion dollar deal on Friday didn't just frighten the president; McDonnell Douglas and Boeing were also on edge, visiting various members of Congress and trying to gather information overnight.

The total investment in the MD.11G project, including the entire aircraft, engines, peripheral technologies, and production lines, was less than $60 billion; while Rolls-Royce only has so many engines, and the scale of the aircraft is unimaginable.

Such a large order could directly create a new aviation giant!

Prism Building also rushed to inquire and was surprised to learn that the Civil Aviation Administration of China would issue the certificate ahead of schedule, which meant that the C919 project was already more secure than iron.

But why does the C919, a medium-sized passenger aircraft, require more resources than the MD.11?
They handed the information over to the military-industrial complex for analysis, and Robert, upon hearing this, slammed his fist on the table and told Kazimirz:
"Although the C919 is small, it was developed from scratch by Saab, allowing them to master the complete production chain from the beginning. Moreover, the C919 is more than enough for their domestic shipping needs!"
More importantly, the aircraft is small and less difficult to manufacture. They have experience in producing the MD82 and Y-10, and have the financial backing of Gaikin, making failure almost impossible. Their only weakness lies in the engine.

With $60 billion in revenue, Royal certainly didn't just sell products; he definitely packaged out the technology as well, and even offered to teach them step-by-step.

The top leadership at Southeast University is attempting to rebuild China's domestic passenger aviation industry through the C919. From this perspective, even an investment of $500 billion would be profitable if successful, especially with Gekkin providing financial support.

The president quickly pulled aside a group of his staff to discuss the matter, and upon discovering that this might indeed be the truth, he panicked:
McDonnell Douglas dared to lobby lawmakers and confront Prism for $40 billion; with $60 billion, he'd probably be willing to take any risk.

Moreover, once this news was released, British airline stocks alone rose by at least $30 billion, and British lawmakers could also make a fortune from it.

You need to understand that among listed manufacturing companies, who makes money from profits? They all make money from stock prices!
In the manufacturing industry, the payment cycle starts at 60 days and has no upper limit. Profit margins are low; even 10% is considered lucky. There are many low-level employees who cause trouble at the drop of a hat, resulting in extremely high management costs. Large, unlisted manufacturing companies simply cannot survive without bank loans.

British manufacturing has long since either relocated or gone out of business, shifting its focus entirely to finance.

In other words, Rolls-Royce and BAE are the last remaining companies struggling to stay afloat. With this big deal, the insiders who knew about it beforehand could manipulate things a bit and make millions of dollars to live comfortably in their retirement.

Nobody can stop them from making money!

Kazimirz knew this, but still came to Dying with a last hope, only to be immediately met with the ultimate slickness from the latter.

The IART embargo agreement is really just a few lines of text; if it's in English, how could they not exploit loopholes in the wording?

Rolls-Royce experts traced the RB211 series back to its prototype in the early 70s. The performance parameters and reliability were so poor that they were not even RB211 series, and were described as an enlarged version of the Spey.

As for the RB211-52X sold to SG? Sorry, SG is a purely European company, wholly owned by Saab. Rolls-Royce firmly disagrees with reselling to a non-compliant party and will not provide a warranty for used engines.

As for the technology transfer agreement with the Nansha Aircraft Manufacturing Plant, there was no way to avoid it, but Blair decided to stand his ground and started making unreasonable demands by bringing up the CH-47.

After such a series of small moves, Kazimirz felt his scalp tingle. CH47 was a major stain on Rams's reputation, a slippery slope that should not be touched. Because of this, the chicken was trying to sell it to Dongda University!
Blair was clearly determined to improve his reputation in his later years. He had just taken office in 97 when he encountered the Christmas battle and managed to get through it smoothly. After completing this big deal, his re-election in 01 was a foregone conclusion, and he would receive high praise from both his military and civil officials after retirement.

Faced with such an invincible person and the powerful troublemaker Dai Ying, Kazimirz could only secretly gasp. After the negotiations failed, he had no choice but to fly back to the Flying Iodine, hoping that Sabo could calm down and not become a puppet of the evil Gekin.

This trip was even more significant. Old Gustav greeted him at the airport with a smile, and then during the meeting, he patted his chest in front of reporters, assuring them that the review would be rigorous and would definitely comply with technical restrictions and regulations. This pleased Kazimirz somewhat, and he promised to seek compensation from the President.

However, a former Saab executive immediately came forward to reveal:

According to past accounts of the Christmas campaign, the $20 billion that Rams personally promised Saab has yet to materialize. A long-established airline is on the verge of bankruptcy due to insolvency. You can't trust the Empire's words!

Now even the officials at the Swiss Iodine Institute started complaining:
Geigin spent $9 million to acquire Saab, revitalizing the automotive industry, expanding overseas factories, investing in research and development, and signing a mega deal with Saab Aviation. For a small country like Switzerland, this is enough to benefit the entire nation for many years to come.

On the contrary, the Empire not only squeezed Sabo, but also went back on its word.

Even if we have to comply with IATR, we can't let Riddi lose such a great opportunity, can we?
Kazimirz was awakened by protests at his hotel the next day, with countless Saab employees holding signs and shouting:
We need rules, but we also need work!

[Rams, give me back my bonus!]

We don't abide by useless pieces of paper!

[…] Local officials immediately told Kazimirz that this was a sudden protest and that they were powerless to stop it, so they could only persuade him not to mind, and that the Swiss authorities would cooperate wholeheartedly.

However, by the afternoon, the crowd had not decreased but increased, and he realized what kind of trick Gustav was playing.

Kazimirz felt powerless and had no choice but to hastily board a plane to leave. On his way to the airport, protesters on the roadside threw all sorts of things at his car, making it a truly terrible experience.

……

Devil
Tang Wen encountered an unexpected situation.

After the Civil Aviation Administration of China issued the dual certificates for the C919, he was worried that this would provoke dissatisfaction from the Shanghai Aircraft Manufacturing Institute, since there was indeed a bias in this matter.

Even the possibility of widespread criticism from industry insiders regarding procedural irregularities and doubts about Gaijin's capabilities had been considered; however, the reality was completely unexpected:
The local government of Shanghai took the initiative to propose that Gaijin acquire the Shanghai aircraft manufacturing plant.

At first, Tang Wen thought it was some audacious guy talking nonsense, but soon Zhao Hande also contacted him, indicating that acquiring the Shanghai Aircraft Factory was feasible, but he would have to assume the debt.

"Old Zhao, the Shanghai Aircraft Research Institute is the only state-owned commercial large passenger aircraft manufacturer in China. Are you sure you want to sell it? Aren't you afraid of what people will say? Be careful that people don't say it's a loss of state-owned assets."

"Loss my ass."

Zhao Hande on the other end of the phone said irritably:
"The Shanghai Institute still has a solid foundation. After nearly 30 years of accumulation, the Y10 and MD82 have accumulated a lot of technology and talent, which will be helpful for the C919."

Tang Wen: "Tell the truth."

Zhao Hande: "We can't afford to maintain them anymore. The country hasn't been able to invest in commercial passenger planes for the past three years. It's better to sell them than leave them idle. You should ask Chang Busi. When he left, he almost poached all the key personnel from the Shanghai Institute. In addition, with the McDonnell Douglas 82 production halted, the Shanghai Institute had nothing to do and stopped operating. Leaving them there to fend for themselves is just letting assets go to waste."

"..."

If we trace this back to its source, we have to go back to Gai Jin.

The domestic economy remains the same; if a large amount of resources are invested in naval construction, the civilian economy will shrink.

You say printing money is mortgaging the future? We've been doing that for a long time. The skyrocketing deposit interest rates and prices are proof that the printing presses are already running at full capacity. Printing any more would be impolite.

In order to save some budget, the top management held several meetings and found that the semiconductor chip industry and the aviation industry, which were the most expensive, the most invested, and the riskiest, had actually been taken over and developed by Gaijin. Therefore, the official budget could be cut accordingly.

Shanghai's semiconductor industry has not only caught up with chip manufacturing, but also secured stable high-tech orders for several lithography machine institutes through acquisitions. Meanwhile, Gaijin's aerospace capabilities, though still in their early stages, are backed by substantial funding and human resources, and once on track, their potential is astounding.

In this situation, it would be better to sell the Shanghai Aircraft Institute to Gaijin for management, which would at least reduce a large part of unnecessary expenses. The 2N+1 plan for the resettlement of laid-off employees, which is reassuring, is also a good reference.

If the three major hidden dangers of selling state-owned factories—bad debts, employees, and remaining assets—can be properly handled, then there will be no resistance.

“Buying is no problem, but Gaijin should be given complete autonomy, just like the aircraft machinery factory.”

"You're in charge. Go ahead and do it."

……

Shanghai Aircraft Manufacturing Plant
Changbus stood in the familiar place again with great emotion, as if he could see the days when Y10 was in full swing.

"Hello, Director Chang!"

"Chief Engineer Chang, you still look incredibly energetic!"

"Old Chang, times have changed!"

""......"

When he saw old acquaintances and even former leaders taking the initiative to greet him, Changbusi felt strangely excited.

It's more accurate to say that Shanghai's airplanes welcomed Gaykins than Chang Jobs.

After learning that the higher-ups planned to sell the factory, everyone at the aircraft depot was hoping for Tang Wen's arrival.

Those who are just coasting along are thinking of grabbing a huge 2N+1 compensation and then immediately starting a business or buying some big-ticket items. Those who want to achieve something and build large aircraft hope to participate in the MD11G and C919 and show their skills. The local government of Shanghai also wants to see the aircraft factory expand its production capacity.

With everyone united, Tang Wen's acquisition met with no resistance. On the contrary, newspapers and the public cheered, as if a bright future was immediately assured after being acquired by Gaijin.

While Changbushi shared this view, he was deeply concerned about the subtle shift in thinking.

"You'll get used to it. It's a money-driven world now."

Ni Zhenhai took the initiative to find him, and upon seeing Changbus's reaction, immediately comforted him like someone who had been through it all:

"There's nothing wrong with that. Before, I always had to talk to them about ideals and the future to keep them. But after they came to Gaijin, I realized that money is all that's needed. If you pay them enough, they'll convince themselves."

Changbusi: "..."

Not wanting to argue such profound questions with Ni Zhenhai, Changbus coughed and prepared to dismiss him.
"You should just get to the point."

"It's nothing much. President Tang asked Shanghai Semiconductor and Gaijin Network to jointly develop a fluid simulation software and a dedicated server. He said it's to help you develop the aircraft and he needs your help to use your connections to collect some data."

Changbus nodded; it was a good thing, and he had no reason to refuse.

"Then, Mr. Tang said that Shanghai Semiconductor would cooperate with you to build a combined power verification machine, saying that it might require a lot of computing power."

"What verification machine?"

"I don't know much about aviation, but I think it's called a ramjet-turbofan combined propulsion system. The goal is to achieve long-duration supersonic cruise at speeds above Mach 2.5 and find the optimal range for switching between turbofan and ramjet power."

He said this was a very rare and large-scale project, and that the aviation machinery factory, Hongdu, and Shanghai semiconductor companies all needed to participate for it to be successful.

"What, what did you say?"

Changbus raised an eyebrow. "A ramjet-turbofan combined engine? That has nothing to do with civil aviation, right?"

(End of this chapter)