bookbashuk #465 - A rebellious
#465 - A rebellious
Although they share a common origin, now that the center of global power has shifted to the United States, the US absolutely doesn't want to see a new, equally powerful rival emerge in Europe!
Not even a close ally.
In their view, it's best if they remain the sole dominant force, with the US acting as the big brother looking after all the smaller European nations.
In the current aviation industry, several US aviation manufacturing companies are frighteningly powerful. McDonnell Douglas, Boeing, and Lockheed Martin are each more powerful than the entire aviation industry of any European country!
Without other competitors, the infighting within the US is fierce. In the main world's historical timeline, McDonnell and Douglas merged first, followed by Boeing's aggressive takeover of the powerful McDonnell Douglas. Eventually, only Boeing and Lockheed Martin remained as the two giants. The business battles and behind-the-scenes deals could fill a million-word classic business epic!
However, when faced with the collaboration between the UK and China on a civilian airliner project, these companies all felt a bit panicked.
In recent years, things have been quite strange in China. New technologies have been emerging one after another, like a gusher. In just a decade, the number of new technologies developed there is almost ten times that of the US!
With these four companies united in a common front, their combined power is astonishing. These are the top US military-industrial complexes, with connections and vested interests throughout Congress, the White House, and the Pentagon.
US Senator Albert publicly stated that the collaboration between Rolls-Royce and Yandu Aviation would have a seriously negative impact on the close relationship between the US and the UK, and hoped that the UK would not approve this collaboration.
A spokesperson for the US Aviation Industry Association stated that Rolls-Royce's hasty actions had led major US aircraft manufacturers to have serious doubts about further collaboration with Rolls-Royce on engines. They would re-examine the feasibility of using Rolls-Royce engines on aircraft such as the 707.
White House Chief of Staff Bernard, when commenting on the project collaboration, said, "We are seriously concerned about this matter. We do not think this is a good idea, as it would seriously harm our security situation."
For a time, the UK faced immense pressure.
"Mr. Robert, there is strong opposition to this matter right now. Are we sure we want to maintain this collaboration? For us, will the losses incurred as a result be greater than the benefits we gain from the collaboration?" Harold asked Robert with a headache while sitting in the Downing Street reception room.
"Prime Minister, first, I want to clarify one point: if we were to do this alone, we wouldn't have the funds to properly research and develop a new airliner that could be competitive in the market. This is almost certain. I think the past efforts of BAC have proven this point. We've tried, but the current financial resources of the Empire make the feasibility of independently developing a mainstream airliner almost impossible," Robert said.
Robert wasn't wrong on this point. In fact, BAC's research and development of the BAC 1-11 airliner in another world was fraught with setbacks, the biggest reason being a lack of money.
Not to mention BAC, Rolls-Royce itself in another main world bankrupted itself by spending £170 million on developing the three-spool turbofan engine!
The British Empire of today is not what it once was; it has long lost the vast wealth to build an invincible fleet.
"Based on the current cost of researching and developing an airliner, we cannot afford it. This is just one point. Most importantly, after our airliner is developed, we lack a large enough market to sell it, which prevents us from spreading the research and development costs, resulting in a high per-unit cost for the airliner. This means that our cost per seat in sales will not be globally competitive, creating a vicious cycle. We won't be able to sell more airliners, which will prevent costs from decreasing and prevent profitability. Without profitability, there will be no funds for further research and development of new models, leading to outdated airliners that cannot gain competitiveness. This will completely lead to a dead end, and our aviation industry will never have a way out!"
Robert raised his voice as he spoke.
"But through collaboration with China, we can break this cycle. First, our research and development costs will be shared, reducing the pressure on both sides. Next, in terms of sales, China guarantees us that sales of this model in China will be at least 1,000 aircraft. This, combined with at least 300 aircraft sold here, will allow us to create a best-selling model of 1,300 aircraft. Even if the research and development cost is £100 million, the amortized research and development cost per aircraft will be less than £80,000. According to our current exchange rate, that's about $220,000. Under these baseline conditions, our airliner's price-performance ratio will exceed that of our American counterparts. If we sell more airliners internationally, then we can completely avoid amortizing research and development costs. We can either directly undercut the market by $200,000 or add $200,000 to the profit without bargaining. We will use this opportunity to enter the mainstream international aviation market," Robert said with increasing excitement.
"Mr. Robert, I must remind you, if the US strongly opposes it, can we still sell so many aircraft?" Harold interrupted Robert.
"Yes, Mr. Prime Minister, what I'm saying is that without even considering the aviation market of the Eagle Country, according to our British Isles Aviation's plan, the demand for short and medium-range hundred-seater airliners in the European, African, and Middle Eastern aviation markets will exceed 300 within 10 years. The Far East tells us that they will need at least 1,000 in ten years. Of course, their fleet is already increasing by more than 200 aircraft every year, but at this stage, they are using improved versions of the DC-3 and DC-4 propeller airliners. Yan Capital Aviation has guaranteed me that after the CAC-120 is launched in the future, at least half of the demand will be converted to the latest CAC-120 jet airliner. I think they greatly underestimate the demand. According to the current development of the Far East, the number of airliners they will need in the next ten years will be more than 200. The Far East is a vast country with abundant resources, and the current economic development speed is very fast. The most important thing is that their transportation with neighboring countries must be carried out by air. According to the estimates of our market assessment personnel, the number of airliners flying to neighboring countries alone will exceed 300. This only calculates the Far East's side. Considering the equality of flights, the development speed of neighboring countries' aviation is almost equivalent to this number. Then, based on the Far East's influence in the surrounding area, at least half of this demand is likely to be obtained by Yan Capital Aviation of the Far East," Robert carefully calculated for Harold.
"In Europe, the growth from Air France and Lufthansa will not be lower than our British Isles Aviation. We can compete for this part of the market. If we can win half of it, that's nearly 300 more aircraft in demand. I believe that the market size of this short and medium-range airliner is expected to exceed 2,000 sales! According to the current agreement, sales within each country are assembled and produced by the country itself. The profit sharing of the local market is 70-30, with the country where it is located accounting for 70%, and the profit sharing of international market sales is 55% to 45%, with us accounting for 45%. We hope to get more than 600 market achievements. According to the current market price of 30 million US dollars, this is a market of more than 20 billion US dollars! No matter how good our relationship with the Eagle Country is, can aviation give us such a big market? No, Mr. Prime Minister, they will never give us such a huge cake. In fact, we are now getting less than 100 million a year in aviation engine business from the Eagle Country."
"20 billion US dollars?! Mr. Robert, are you kidding me?" Harold stood up in shock, his hands trembling with excitement. 20 billion US dollars in ten years, how many jobs will it create!
"Mr. Prime Minister, this only calculates the market situation in the last ten years," Robert said eagerly, "We have carefully evaluated the CAC-120 of the Far East. They have a complete development plan. The life cycle of this airliner is far more than ten years. In the future, they may even develop a series from 100 seats to 200 seats, with a range covering 3,000 kilometers to 6,000 kilometers, covering various routes from Europe to North America, Africa, and the Middle East, taking into account the dual needs of intercontinental aviation and intra-continental aviation. Mr. Prime Minister, the development of the Far East's aviation industry has an extraordinary leader. They have ambitious and pragmatic development plans. We believe that now is the right time to cooperate with them. If we wait until they obtain the airworthiness certificate in Europe, our value to them will be greatly reduced," Robert continued.
"In fact, our Rolls-Royce company is seriously considering whether to introduce the Gallic and Prussian aviation manufacturing industries into the alliance."
"Don't! Don't do that!" Harold, struck by the huge number of 20 billion, walked back and forth with his hands clenched. "This matter can be done by our John family together with the Far East. This employment opportunity must be left to our John family!"
An annual output value of 2 billion US dollars, according to the current per capita GDP of 1,400 US dollars, even if the output value of the aviation industry is higher, it is at least a solid million-level employment production chain. Such a huge performance makes Harold, who is a little bit collapsed economically and works in Downing Street with trepidation, seem to have grasped a life-saving straw!
You must know that the current population of the British Isles is only more than 50 million, and the employed population is about 20 million. A million-level newly added high-end industrial employment population can make voters go crazy!
Under such circumstances, what is the threat of allies!
"Robert, you must not only insist on doing this cooperation, but also do it well! We must ensure the success of this project," Harold quickly found a reason for cooperation from other directions when his thinking completely began to revolve around this project, "Just like our agricultural cooperation with the Far East, we will make this project a new model of cooperation. In Africa, through agricultural cooperation with the Far East, we have basically solved the problem of food self-sufficiency in the colonies, making Africa no longer a hungry Africa. We ignored the publicity of this point before. From now on, we must vigorously promote the benefits of international cooperation to the John family and the international community, and vigorously promote the major achievements we have made in food security in Africa."
Harold's thinking became more and more active, "We must let most of the people know that we and the Far East have finally found a new model of cooperation and win-win after more than 100 years of bumps and bumps. We can achieve success in food production, then we will also achieve the same success in the development of the aviation industry, and cooperation in aviation will directly bring us hundreds of thousands or even millions of job opportunities!"
Robert was a little dazed when he heard it. Mr. Prime Minister did not have such an attitude before. Could it be that he has exaggerated a bit this time? If he continues to exaggerate like this, if he can't achieve it by then, will he be thrown rotten eggs and tomatoes by angry voters?
Thinking of this, Robert couldn't help but shudder.
"Next, our communication with the Far East will be closer. I have decided that next month, no, try to fly to Yan Capital next week to seriously communicate with the senior management of the Far East on this cooperation! Robert, you go with me. In addition, organize other companies in the aviation industry, and let us show the Far East our strength in the aviation industry," Harold waved his hand vigorously at the end.
Got it! This matter is locked! Robert can't pour cold water on it now. This matter can only be pushed forward with a stiff head.
The aviation industry of the Eagle Country never dreamed that their high pressure would produce the opposite effect. Under their pressure, the rebellious bones of the John family of the British Isles were aroused and stimulated by interests. Harold really led a group of hundreds of people from the aviation and electronics industries to visit the Far East. This time, they not only signed a series of strategic cooperation intentions in the aviation industry.
Even in shipbuilding, the British Isles and the Far East signed a large flat-panel cooperation project!
The British Isles will share some of its experience in large flat-panel design to help the Far East build its Northern-class large flat-panel.
As a sign of sincerity in cooperation, the Far East shared 100,000-level ro-ro ship technology to cooperate with the British Isles shipyard to open up the opportunity for the European market for super-large ro-ro ships, so that the British Isles can continue to be competitive in commercial transport ships.
When the news came out, the Eagle Country was stunned.