Chapter 144: An airline without stewardesses



Lanster came back from Detroit, and Hardy took over the contracts of HD Security and General Knudsen and looked at them. The annual consulting fee was 20,000, and there were various benefits.

As for responsibilities, it is to attend several meetings every year and offer suggestions for the company.

There is also a special clause in the contract, which states that if you make a contribution to the company's development, you will receive a bonus of varying amounts each time.

So what is contribution?

It's actually very simple.

For example, when the company encounters a problem, it can find these veterans and ask them to help make a phone call and find connections. This is considered a contribution to the company, and they can be justifiably given a bonus.

It's a blatant use of money to buy relationships.

"Lanster, I have already agreed with General Williams that I will help him absorb 1,000 retired officers and soldiers every year. We can pick the best ones. There is no contract. This is a verbal agreement between Williams and me. HD Security will enter the fast lane of development."

"For the West Coast market, we need to expand into the San Francisco market as soon as possible. For the East Coast, we need to establish a branch in New York. In the future, New York will be the East Coast headquarters of HD Security. We will start to expand our business there."

Then he took out a piece of manuscript paper and handed it to Lanster.

"This is my vision for the future development of security companies. There is a lot of room for expansion in the business of security companies, and there is no need to focus only on the traditional business."

This manuscript contains the business scope of the security company that Professor Hardy and Professor Nussen mentioned a few days ago.

Lanster took it and read it, looking a little shocked.

private prison.

For Serving the Ministry of Defence.

Independent intelligence consulting firm.

Create mercenary armies and participate in regional conflicts.

Hardy's idea is really bold.

But thinking about it, Lanster became excited. If it were according to Hardy's idea, HD Security would become an extremely powerful organization.

And I am one of the founders of this organization.

"I will do my best." Lanster said firmly.

......

A week after the airline posted its job advertisement, many people called to inquire. Today is the day of the recruitment meeting, and Hardy came in person.

A middle-aged man in his forties walked into the conference room and handed over his resume. Hardy took a look at it. The man's resume was very impressive. He had worked in three airlines and his last position was assistant to the president of United Airlines.

"Mr. Moose, tell me how you would run HD Airlines if you became the president," Andy asked.

The middle-aged man did not hesitate and said: "Set operational goals, implement operational indicators, build a team, establish a good corporate culture, ensure the development of core management capabilities, and maintain smooth communication between the company and customers, suppliers, partners, government agencies, and banks..."

The applicant spoke confidently for more than ten minutes, and it was obvious that he was very familiar with the airline's business, but Hardy had already rejected him in his heart.

It's all superficial. He may be able to be an assistant to the president, but he can't be a president who is responsible for pioneering development.

Next, I interviewed several more people. Some of them had worked as operations directors in other airlines, some had worked as managers in other companies, and one was even the former vice president of Pan American World Airways.

But after communicating with these people, Hardy didn't like any of them.

They do understand the business, but that only means they have extensive work experience; it does not mean they can become qualified presidents.

Finally, a middle-aged man in his thirties came in. His name was John Franklin. He used to be the executive general manager of a small local airline in Texas. Later, the company was sold by the boss, so he switched to work for United Airlines and is now the operations manager.

"Mr. Franklin, if you were the president of HD, how would you run it?"

Franklin seemed to be prepared, saying, "I think there are big problems with the operations of major airlines right now."

"Oh, what's the problem?" Andy asked.

"Nowadays, airlines are more focused on long-haul flights, investing their experience in long-haul transportation, and paying more and more attention to service, comfort, and beautiful stewardesses. All these have increased costs invisibly. In fact, I think that airplanes are just a means of transportation. As long as we can safely send passengers to their destination, we have achieved our goal."

"I think some service items should be cut to reduce operating costs."

"Some airlines are extravagant, building high-end rest areas and high-end employee cafeterias for their employees, with luxurious decoration and rich food. All of these are paid for by the company. I think costs should be reduced. As for the so-called cultivation of team loyalty, it is better to turn benefits into money and increase wages. Nothing works better."

"Another way is to lower the ticket prices. Although the Aviation Administration has set ticket prices, the airfares are too high and not affordable for ordinary people. For example, Los Angeles to San Francisco is 600 kilometers away and the airfare is $50, which is one person's weekly income.

Many people choose trains and cars because of the high ticket prices. I have calculated that even if the ticket price drops to $20, the airlines will still make a profit. If we lower the price, it will definitely attract a large number of customers to fly."

"In fact, the airline industry is a highly homogenized industry. What you have, other airlines also have. You can provide a service, other airlines can also provide it, so consumers have no loyalty at all."

"The airline I worked for in Texas only had six planes and all of its routes were relatively close, but the operation was good. The measures I took were to save costs and lower the price as much as possible. After all, there are still many poor people, and many people are willing to take more economical planes."

Hardy looked at this guy named Franklin, who was about 1.9 meters tall, with a slightly serious face, and looked like an energetic person.

"Mr. Franklin, what are your salary requirements?" Hardy asked.

Andy looked sideways at his boss. This was the first time the boss asked about a person's salary, which showed that the boss was quite satisfied with this guy.

"Mr. Hardy, my request is an annual salary of 10,000 US dollars, which will increase with years of service. However, I have another request. I would like to ask for management shares." Franklin said.

Hardy was not surprised. Instead, he smiled and said, "How many management shares do you want?"

“6%.”

Hardy thought for a moment and said, "I can give you management shares. There will be no shares in the first three years, but starting from the fourth year, they will increase by 2% every two years, capped at 6%."

"Incentive shares only provide dividend rights. When you leave the company, your shares will be automatically reclaimed. What do you think?"

Franklin became a little excited. He had been to many companies, but no company had ever valued him so much.

"Mr. Hardy, I will work hard to develop the airline," Franklin said.

Hardy smiled and said, "Your idea of ​​'low-cost airlines' coincides with mine. Would you like to hear my opinion?"

"Of course, Mr. Hardy."

Franklin thought to himself, you are the chairman, how dare I disobey you?

"HD Airlines operates 50 aircraft in total, all of which are Douglas models, and their spare parts are almost the same. This way, all equipment can be standardized, which will save a lot of costs."

Franklin nodded. That was indeed the case.

"The 25 C-53s will be used as passenger aircraft. We can then add more seats to the aircraft. They don't need to be that comfortable, and there won't be any first-class or business-class cabins. They will all be economy class. I've asked someone to calculate that each aircraft will have 42 seats. Selling a few more tickets can increase revenue."

Franklin smacked his lips, as if his boss was more frugal than he was.

"Also, there are no meals or drinks on the plane, and we don't have flight attendants on the plane. In addition to the pilot, there is only one male flight attendant," said Hardy.

"No stewardess?"

"Yes, there are no flight attendants. HD Air's route is to win the market with a low-cost strategy. Flight attendants are too expensive."

Franklin looked at Hardy in a daze. Is this really okay? Extra seats, no service, no stewardess, no difference from a bus. Will the passengers curse?

But Hardy's next words dispelled Franklin's doubts. He thought that the passengers might not curse, but would be more receptive.

After all, there are many poor people.

"We can save a lot of operating costs by doing this, but how can we attract customers? That is price. If the prices are the same, they will naturally choose the better one. But what if the price is much cheaper?"

“For example, in the example you just gave, if other companies charge $50 for a ticket from Los Angeles to San Francisco, how about we only charge $30, or even $25?

The ticket price is half the price. Who do you think passengers will choose? Let other airlines serve the rich, and we will serve the poor and still make money. "

"In order to increase customer stickiness, a points system can also be adopted. For example, every time you take a flight, you can accumulate some points, which are valid for one year. The points can be used for the next flight and can be directly used as cash."

"For example, if you fly from Los Angeles to San Francisco for $30, you can earn three points. Next time you fly from San Francisco to Philadelphia, which costs $60, you only need to pay $57."

"With the points, do you think more people will choose to fly with HD Airlines? After all, they can save money."

Franklin understood, but he immediately asked, "Boss, what if someone takes a flight many times and accumulates a lot of points, they can buy a free ticket. What should we do then?"

Hadi smiled and said, "This is normal. In fact, the points are the money for discounts given to customers. We have already included this part of the money in the expenditure."

"There are also company employee benefits. If our company's conditions are not as good as other companies, it will naturally be difficult to retain employees. My idea is to convert all employee benefits into wages and bonuses and distribute them to employees."

"Of all the employee benefits, none is more substantial than the bonus you receive. What do you think?" Hardy looked at Franklin and said.

Franklin was convinced by this boss.

It turns out that others have already thought of my idea, and their idea is more thorough and insightful than mine.

However, money is not saved where it should be spent. Only when employees get actual benefits will they be loyal to the company. As for the other so-called corporate culture, it is all nonsense.

The president of HD Airlines is confirmed.

From now on, hd aviation officially takes off.


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