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Chapter 209: Entering the Aviation Industry


Tonya has not returned to the Soviet Union for a long time since Seryosha sent her to Italy to start her shipping company, and she now lives in Switzerland with her mother.

Although they can't see Seryosha often, the relationship between the two has not changed in any way, after all, what they have experienced over the years is definitely not something that an ordinary woman can imagine.

Tonya now runs the Mediterranean shipping company, which was previously founded by a coalition of Italian mafia families.

The Italian mafia had its hands on the shipping industry in order to launder money.

It is said that several of the Suez-class freighters of the early MSC were paid for in cash.

But then, as the global, especially European economies fell into a downturn.

The Mediterranean shipping company suddenly turned into a black hole of funds, and as a last resort, the Italian mafia abandoned the company.

Seryosha took over the company and put his wife at the helm.

After several years of development, MSC has become the world's second largest shipping company, and the gap between it and Maersk, the largest shipping company, is gradually narrowing.

However, MSC is the shipping company that has placed the most orders to shipyards in the world this year.

In the first half of the year alone, five billion dollars were spent on ordering nearly thirty giant oil tankers.

This is simply an order that shocked the global shipbuilding market.

The shipping business is different from the high-tech industry, focusing on stable profits and long-term customers.

So Tonya has always been the most low-key of Seryosha's lovers.

However, Tonya, who is deeply involved in the shipping industry, has also realized that now the global shipping market is gradually shrinking, and although it is not impossible to surpass Maersk, the profits obtained are simply not proportional to the pay.

So Tonya turned her attention to a new area of business, which is the air transport industry.

Tonya now owns an air cargo company that operates air cargo from Warsaw to Italy, which is now largely used within the Gorky Brotherhood.

Tonya worked as a flight attendant in the Soviet Union, and later Tosseryosha became a key training object in the organization, worked in a management position for a while, and also studied at the Soviet Aviation Management Institute.

Her passion for civil aviation has always wanted to get into the field.

Tonya has been on the lookout for a suitable investment for years, and just a few months ago she met with Schwartzman, a partner at Blackstone in New York, who introduced her to a major shareholder of Pan Am.

So Tonya moved the idea of buying the iconic American airline.

However, when Tonya got the financial report about Pan Am Airways, she couldn't help but retreat.

The world-renowned intercontinental luxury travel airline is not doing as well as it once did.

After several years of losing money, even Pan Am's headquarters in Manhattan, New York, was sold to MetLife Insurance.

At present, Pan Am is probably the most valuable thing in the company's hands is the large number of Jumbo passenger planes in the company's hands, the big technology with more than 400 seats, and the right to operate airports in New York and other places.

Schwartzman advised Tonya to wait a few days and not rush to decide on the investment.

Because Pan Am is now heavily in debt, and because it is America's iconic airline that operates around the world, Pan Am planes are often targeted by terrorists.

Moreover, the U.S. economy is still sluggish, and the market for luxury intercontinental air travel is not as good as it used to be.

Pan Am's business is indeed very bad, but his old rivals Delta Air Lines, United Airlines, are not doing much better.

In the final analysis, this phenomenon is due to the fact that there are too many factors restricting the aviation industry, including international oil prices, political situation, economic prosperity and other factors.

It's not an easy business.

So after careful consideration, Tonya decisively abandoned the plan to acquire Pan Am, the world's No. 1 airline, and decided to buy a smaller airline in the United States, just like running a shipping business.

So with the help of Blackstone, Tonya visited Southwest Airlines, a small airline headquartered in Dallas, Texas.

Blackstone introduced the company to Tonya because of its simple financial structure, small asset size, and low management difficulty, making it easy for inexperienced market entrants to get started.

Southwest Airlines has more than 100 aircraft, but these more than 100 aircraft are all unified Boeing 737 aircraft.

Because there is only one type of aircraft, the pilot cost problem caused by multiple types of aircraft is avoided.

Tonya's team runs a brutal shipping industry, so they know how to evaluate a company's competitiveness, that is, cost, and this single-type airline has a greater appetite for Tonya than the towering multi-aircraft luxury fleet of Anti-American Airlines.

After initial contacts, Tonya offered Southwest Airlines' current shareholders an irretrievable proposal that Tonya could merge her European routes into the assets of Southwest Airlines, and that Enron Energy and Occidental Petroleum, both owned by the Gorky Brotherhood, would provide the company with more favorable jet fuel.

These two conditions, coupled with the abundant funds brought by Tonya, Southwest Airlines had no idea of refusing, and happily agreed to Tonya's request to hold the company.

After the takeover and privatization, Tonya spent a month working on a new overhaul of Southwest Airlines' management.

Under the leadership of Tonya's team, a number of shipping companies have been used in the aviation industry to save money and reduce costs by all means.

Tonya's first step after taking office was to remove all the business class on all the company's planes and replace them with ordinary class seats.

So that one plane can carry a few more passengers.

Although business class and first class can bring more revenue, Tonya thinks that no matter how hard Southwest Airlines tries to compete with Pan Am, she simply gives up and focuses on what Southwest Airlines can do well.

Years of slump in the shipping industry have made Tonya accustomed to a cost-cutting approach that no one has done in the airline industry, after all, airlines are only a few decades old and have always been promoted as a way of life of luxury travel.

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As a result, Tonya's reforms made it difficult for Southwest Airlines employees to adapt, and in order to stabilize the morale of the military, Tonya generously launched an employee stock ownership plan, so that the income of most employees of Southwest Airlines began to be linked to the company's earnings.

Tonya wants Southwest to be called a disruptor in the international aviation market. t1706231537: