The Tyrant Billionaire

Chapter 180: Chapter 180 HD Airlines Taking Off

Franklin seemed well prepared and said, "I believe there are significant problems in the current operations of major airlines."

"Oh? What problems?" Andy asked.

"Currently, airlines are overly focused on long haul flights, investing heavily in long distance transportation. They emphasize service and comfort, even hiring attractive flight attendants, which all significantly increase costs. In my opinion, an airplane is just a means of transportation. Our goal should be to get passengers to their destinations safely."

"Luxury meals in lavishly decorated dining areas—all these costs are borne by the company. I think we should cut costs. As for so called team loyalty, it's better to convert benefits into cash and increase salaries, which is more effective."

Franklin continued, "Airfare is high, and although the aviation administration sets ticket prices, the costs are too high for ordinary people. "For example, a flight covering the 600-kilometer distance from Los Angeles to San Francisco costs $50, roughly equivalent to a week's earnings for some individuals."

"Because of the high fares, people opt for trains or cars. I've calculated that even if ticket prices were reduced to $20, airlines would still make a profit. If we lower prices, we can attract a large number of customers."

"In a highly homogeneous industry, whatever service you provide, other airlines can also offer. Therefore, there's no customer loyalty. At my previous airline, although we only had six planes and operated mostly short routes, our performance was good. I implemented measures to cut costs and lower prices, as there are many people willing to choose cheaper flights."

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

Andy glanced at his boss. It was the first time the boss had asked a candidate about their salary expectations, indicating his interest in Franklin.

"Mr. Hardy, my salary expectation is $10,000 annually, with incremental increases over the years. However, I have another request: I want management shares," Franklin said.

Hardy wasn't surprised and instead smiled, "How many management shares are you asking for?"

"6%."

Hardy thought for a moment and said, "We can give you management shares, but not in the first three years. Starting from the fourth year, you'll receive 2% every two years, capped at 6%."

No other company had shown him such respect.

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

Hardy smiled and said, "Your idea of a 'low cost airline' aligns with mine. Would you like to hear my thoughts?"

"Of course, Mr. Hardy. Please go ahead."

Franklin thought, 'You're the chairman, how could I not listen?'

"HD Airlines will operate a total of 50 planes, all Douglas models. Using the same parts for all equipment will save a lot of costs."

Franklin nodded in agreement.

"We'll use 25 C-53s for passenger flights. We'll add more seats, forgo comfort, and eliminate first and business classes—just economy class. I've calculated that each plane will have 42 seats. Selling more tickets will increase revenue."

"Additionally, there will be no meals or drinks on board, and we won't have flight attendants. Besides the pilots, we will have only one male flight attendant," Hardy said.

"No flight attendants?"

"Yes, no flight attendants. HD Airlines will win the market with a low cost strategy. Flight attendants are too expensive."

Franklin was a bit stunned. Would this really work? Adding seats, no service, no flight attendants—it would be like a bus. Would passengers complain?

However, Hardy's next words reassured Franklin. He felt that passengers might not complain but instead accept it easily.

After all, there are many poor people.

"This way, we can save a lot of operational costs. But how do we attract customers? With prices. If the price is the same, they will naturally choose better services. But what if our prices are much lower?"

"Consider this scenario: most airlines currently impose a $50 fee for traveling from Los Angeles to San Francisco. What if we were to introduce a lower fare of $25 or $30 instead?"

"By targeting the low income market, we can still make money."

Franklin was convinced by Hardy.

It turned out that Hardy had thought of everything, even more thoroughly and meticulously than Franklin.

However, they didn't skimp where it mattered. Only when customers gained real benefits would they be loyal to the company. Other so called corporate cultures were just nonsense.

HD Airlines' president was confirmed.

From now on, HD Airlines is officially taking off.

...

The old godfather was finally discharged from the hospital.

After over a month of treatment, the old godfather's condition had stabilized completely, and he was allowed to return home to recuperate. He was taken back to the Corleone's Manor.

Hardy visited the old godfather.

The old godfather looked at Hardy and said, "Hardy, I want to thank you once more. You stayed in New York for a month and a half just to help Michael."

"You're welcome. I hope you recover soon," Hardy replied.

Hardy hadn't anticipated staying in New York for such a long time during this visit. When he arrived, New York was still in sleet, but now it was spring, with flowers blooming.

But this time, Hardy also gained a lot.

Helping Michael led him to gain the friendship of the Corleone family.

Simultaneously, He founded an airline company from scratch, increased his assets by millions, became friends with General Williams, Deputy Director of Military Logistics Support Administration, and HD Security also gained a lieutenant general as a consultant.

"Mr. Vito, I came to bid you farewell and prepare to return to Los Angeles," Hardy said.

The old godfather nodded. "With so many enterprises, you really should return and check on them. Hardy, if you need help from the Corleone family in the future, just call me directly. I have friends in New York, the legal community, Washington, and the business community, and perhaps I can be of assistance."

The old godfather's connections were the Corleone family's greatest asset. Telling this to Hardy was like granting him access to those connections.

Hardy did indeed need to leverage these connections in many places. His businesses needed to expand their markets. With the old godfather's assistance, he could save considerable effort.

After a family dinner at the Corleone Manor, Hardy bid farewell, with Michael accompanying him out.