Chapter 254 It's Not a Conspiracy Theory

Yang Cheng made a gesture, "Don't worry, listen to me, you will understand naturally.

In the world's largest North American, European and Asia-Pacific markets, international airlines generally cooperate and share business development through alliances. Entering other regional international markets is also the only way for one of the world's top three comprehensive aviation companies to break through the bottleneck.

Alignment of large foreign airlines and consolidation of US global airlines has created a supply oligopoly in the Pacific and Atlantic skies.

Every global airline has formed antitrust-immune partnerships with large foreign airlines: American Airlines has agreements with British Airways and Japan Airlines; United Airlines has alliances with Lufthansa and ANA; Air France, KLM and Alitalia in partnership.

Going a step further, Delta and Air France could coordinate flight schedules, share check-in counters, and share turnover, allowing both parties to achieve an "alternative merger" without the pain of merging employees.

And if the routes served by both airlines are not full, the airlines can jointly plan to reduce flights. This method of managing passenger flow has greatly improved profit margins. Flights between cities in Italy alone could generate $12 billion in revenue for Delta and its partners and achieve double-digit profit margins.

These alliances have fought on many international routes. But pricing power is much greater when two competitors offer services, rather than four or five.

Delta Air Lines' previous agreement with Virgin Atlantic is the best example, and this partnership has also successfully obtained antitrust immunity.

In order to build a transatlantic franchise, Delta spent $1.4 billion to renovate and expand Terminal 4 of New York's JFK Airport. London's Heathrow Airport is still a relatively low-ranking company; in 2009, Virgin Atlantic, British Airways, American Airlines and Delta Air Lines were all competing for this business; in 2010, British Airways and American Airlines merged business, occupying a monopoly position in the route market.

But after refurbishing the terminal, Delta more than doubled the number of flights between Heathrow and JFK, from three to seven a day, and its market share doubled overnight. That's 37 percent, with American and British Airways, as well as Delta and Virgin Atlantic, controlling a combined 90 percent of the route.

Since 2011, Delta Air Lines has plans to make a series of equity investments to expand its international business, with a total investment of more than 1 billion US dollars, such as the cooperation that has reached an agreement-Delta Airlines invests in the small Japanese Tianma Airlines that requires 20% equity, because Small Japanese authorities have regulatory requirements that the shares be less than 20% and have not yet been announced. "

Back on the sofa, Yang Cheng spread his hands, looked at the two tycoons and smiled, "Now, do you understand the timing I'm talking about?"

Conrad showed the same sly smile, "Hehe~ Investing means spending money, and spending money means reducing the amount of operating funds, and the absence of liquid funds means that Delta Air Lines has lost its bargaining chips and the ability to protect itself. Not to mention Jason, you are as cunning as a fox."

Yang Cheng put away her smile, and said mockingly, "Really? A cunning fox is always more beautiful than a hyena that snatches food from other people's mouths."

Thick skin is a compulsory course for big shots. Obviously, for this subject, both Konrad Koch and Abramovich got full marks, as if Yang Cheng's sarcasm was not aimed at them.

However, maybe in order to make future cooperation smoother and not to cause barriers, Conrad still took the initiative to explain,

"Jason, in fact, we have no intention of competing with Yuanshan for the position of the largest shareholder of Delta Airlines. We just want to better protect our own interests and be able to serve as a strong assistant for Yuanshan in the board of directors."

Yang Cheng didn't accept this at all, and took advantage of Conrad's rhetoric, and counterattacked, "Well, for the success of our cooperation, I hope that the shares held by you together will not exceed 3%. When the board of directors is reorganized, I will I will propose to give you an observer seat, you can attend the meetings of the board of directors and the planning and development committee, but you have no voting rights.

Abu snorted dissatisfiedly, "3%? What about sending beggars? Not enough, at least 7%"

Yang Cheng made a helpless gesture to Conrad, "Look? My suspicion is correct. Your purpose is not just to protect your own interests."

"Roman, don't worry~" Conrad also winked at Abu speechlessly.

Turning his head and asking Yang Cheng, "Jason, 3% is too little anyway."

Yang Cheng sneered, "Then do you know that 7% was the largest shareholder of Delta Air Lines before?"

After drinking all the wine in the glass, he said coldly, "Let's not talk about Yuanshan, even the Pioneer Group will not tolerate you exceeding their shareholding."

Maybe he still felt that it was not enjoyable enough, so he added another sentence and said with a sneer, "Of course, if you can persuade the Vanguard Group to let go, 7% is not a problem."

Now even Conrad's face is not very good-looking, not because of Yang Cheng's words, but because of the shadows hanging over the sky and the darkness of his life, he can't laugh.

Outsiders don't know, they, who were born and raised in the United States, don't know the dominance and deterrence of the four big gangsters in the United States?

The four gangsters headed by Pioneer, Pioneer, Fidelity, State Street, and Blackstone, control 99.9% of large American companies through cross-shareholding, and then penetrate their influence to the world through these cross-border groups.

This is not a conspiracy theory. As the biggest opponent of Laomei during the Cold War, Polar Bear, in order to find the loopholes in Laomei’s own existence, he once conducted a survey and research on American companies. Both 'partners' and 'competitors' are actually controlled by Pioneer and its subgroups.

For example, leading companies in various industries and fields, as well as those world-renowned large groups, take the time to check their top ten shareholders, and there are four thugs all over the place: Alcoa Altria, AIG, AT&T, Boeing, The Coca-Cola Company, DuPont, EssenMobil, General Motors, Hewlett Packard, Home Depot, Intel, IBM, Johnson & Johnson, McDonald's, Microsoft, Pfizer, Procter & Gamble, Walmart, Time Warner, Walt Disney, Viacom, News Corp, Columbia, Comcast, and more.

Another example is the bank. Everyone knows that no rich company has money in the bank, and who controls those financial banks with trillions of assets? The answer is obvious, or the four hooligans, especially Pioneer!

*****—Sitting on $2.39 trillion in total assets, its largest institutional investor is Vanguard, and among the top ten investors are Vanguard Total Stock Market Index Fund, Vanguard Institutional Index Fund and Vanguard 500 Index Fund.

Bank of America - With $2.17 trillion in assets, its largest institutional investor is still Vanguard. Among the top ten shareholders are still Vanguard Overall Stock Market Index Fund, Vanguard Institutional Index Fund, and Vanguard 500 Index Fund.

The well-known Citigroup - ranked third with assets of 1.88 trillion US dollars, the largest investor, yes, no surprises, no surprises, or his pioneer, but among the top ten shareholders, there are a few more New faces, in addition to Vanguard Overall Stock Market Index Fund, Vanguard Institutional Index Fund, Vanguard 500 Index Fund, and Wellington Fund, the relationship between this institution and Vanguard has been introduced earlier, so I won’t go into details here.

Finally, the old stock god Warren Buffett's favorite Wells Fargo - total assets of 1.44 trillion US dollars, deposit savings of 1.01 trillion US dollars, this time there is a bit of a surprise, because its largest institutional investor is no longer Pioneer, Pioneer is only Ranked second, but the top ten shareholders are still under the control of the four rogues, Vanguard Overall Stock Market Index Fund, Fidelity Hedge Fund, Vanguard Institutional Index Fund, Vanguard 500 Index Fund, and Wellington Fund.

So the question is, Pioneer is so awesome, what background does it have? Or who controls Pioneer? Hehe~ For the sake of this book's life, I will not explain it clearly. You can use your imagination as much as possible, including those ancient monsters and those legendary financial groups that often appear in novels, and you can basically guess Not far from ten, oh, don't forget that there is also Z~F in the United States.

Saying so much and going so far is not to prove how rogue Pioneer is, but to emphasize one thing. The United States is not as free and democratic as it is on the surface. In fact, it is just a country that has developed the oligarchic economy to the extreme. The words I understand are back to basics, when martial arts practice reaches a certain level, there is no trick to win, and the whole person looks round and natural, no different from ordinary people.

Just like these big hooligans, they divide their property without limit and hide it among the people. On the surface, these monsters don’t exist anymore, but in fact, they are affecting and even controlling people’s lives and future bit by bit.

It doesn't really matter to Pioneer that the Yang family won the seat of the largest shareholder of Delta Air Lines this time, because no matter who is the largest shareholder, as long as their interests are not damaged, it is the same, and they also I won’t be idle and bored to attack you. After all, the assets of Delta Air Lines are just a drop in the ocean for their tens of trillions of dollars in assets, but if they want to kick them out, it is idiotic.

Can Konrad Koch not understand this? wrong! He didn't think too clearly, why didn't Koch Industries go public? The most obvious reason is the stupid method adopted to avoid the erosion of their family assets by traditional forces.