China Southern Airlines shares Yuantong Express: "Chinese version of Ups" Road how far?

Southern Airlines to buy Yuantong Express 15% shares of rumors, although Yuantong Courier President Shangfeng September 22 in an interview with the 21st century Economic report, said no conclusive information disclosed, but the reporter from other reluctant to be named Yuantong senior executives have been confirmed, Yuantong indeed in the southern airlines to discuss equity cooperation. And another very close to the industry insiders revealed that after more than six months of negotiations, the two sides of the cooperation has been basically determined.

Southern Airlines is reluctant to respond to the issue.

The 21st century economic reporter also learned from another source of reliable sources, before the southern Airlines, Yuantong also had with the Eastern Airlines on equity cooperation negotiations, but ultimately because of the issue of control rights and other issues fell apart.

In China Transportation Association, East China Branch secretary-General Wang Lei, the airlines and express hands are powerful together to form an industrial aircraft carrier. Xu, chief advisor of China Courier Consulting Network, also believes that the two sides are holding hands is a kind of mutual win, South Airlines get more supply and yuantong to obtain more routes to protect, conducive to its public before the rally. Xu that the industrial upstream and downstream convergence of the trend is clear, it is expected that similar equity cooperation in other airlines and courier companies will occur again.

Two major airlines successively Mihui Yuantong

September 19, the South Airlines acquisition Yuantong Express 15% shares of news spread. News that the two sides are still in negotiations, Societe Generale Securities Investment Banking Department participated in the transaction operation, but the amount of the acquisition has not been determined.

21st century economic reporter learned from a number of channels, the Southern airlines and the flexible negotiations, beginning in the beginning of this year, the two sides after more than half a year of negotiations has been basically determined, and the details of the cooperation between the parties are very tight. Surprisingly, the southern airlines is not a flexible express share of the sole object of the negotiations, a reliable source of anonymity to the reporter revealed that in contact with the Southern Airlines before the second half of 2013 has been with yuantong secret dating for a long time.

China Eastern and Southern Airlines are actively engaged in tact, because three years ago, the SASAC has to Air China, Southern Airlines and Eastern Airlines three state-owned airlines, can be integrated with several private courier, to create like the United States FedEx, UPS, with a strong network of express giants.

At that time, Eastern Airlines responded most positively. On the one hand because the East Airlines loss for many years, eager to regain the new model, on the other hand, the helm of Liu to the logistics of aviation has its own ideas, and then the idea formed the East Air Freight "heaven and earth" strategy, will be east-far logistics, East Airlines Transport, East Airlines Express integration into the cargo airlines, through the "whole process" access, It not only provides transportation services for air cargo, but also plans to collaborate with raw material manufacturers, distributors, consumers and other transport providers.

The source told reporters that the beginning of the eastern favored by the ranking and the size of the former Express courier and Shun Fung Courier. But in the end there was no result.

East Airlines then find the Yuantong Express. Yuantong ranked old, at that time has been established in the country 8 areas, 61 transshipment centers, more than 6,000 distribution outlets, with more than 80,000 employees, the scope of service coverage of more than 1600 cities, more than 70 air transportation Tongda City. And then Yuantong began to do listing plans for the East Airlines to find the intention of cooperation is very interested.

According to the above-mentioned sources, in the Yuantong view, with the large state-owned airlines to carry out equity cooperation, not only to protect its route of the Web resources, China Eastern aircraft, pilots and cargo management experience are excellent internal resources, just can meet its own airline to build their dream, in addition, with the depth of cooperation between airlines, In the capital market is also a good story-telling subject.

Build air freight giant Mac

If there is no accident, Southern Airlines and Yuantong will soon smooth hand. According to sources, the two sides intend to work together to build air cargo overlord. Interestingly, China Southern Airlines, the largest aircraft in the country, is willing to commission a segment with the Aviation Rookie Yuantong Alliance, and is willing to help potential competitors to expand the size of freight, the considerations here are thoughtful. Because, it is the problem of circular navigation empty caused by the earlier China Eastern Airlines and yuantong cooperation fell through.

At the end of 2012, Yuantong disclosed that is preparing the air cargo company, and submits the application to the CAAC. The source said to reporters that in the eastern Airlines and Yuantong Love, the eastern side of the proposal, since the Yuantong will cooperate with the Eastern airlines, forming a close alliance, we should rely on the expansion of Eastern airlines capacity, and do not develop their own airlines, lest the formation of internal resources competition and waste. But tact is always unwilling to relent.

In fact, not only SASAC let the three airlines to FedEx and UPS as the goal, in Yuantong Courier Chairman Yuweijiao View, to create a Chinese "UPS" is his direction. He once told reporters that no air courier company is like no wings, no core competitiveness, there will be no future. In accordance with the flexible plan, will invest 5.5 billion yuan in the next ten years to establish yuantong Freight Airlines, headquartered in Hangzhou Xiaoshan, and in the next three years to achieve 15 owned aircraft fleet size.

July 17 This year, the Civil Aviation Authority issued a notice, the Civil Aviation Administration of East China approved the first instance of Hangzhou Yuantong Cargo Aviation Co., Ltd. was established. Yuantong Freight registered capital of 400 million yuan, mainly engaged in domestic (including Hong Kong and Macao), International Air Cargo mail transport business, the company intends to use consists or 400-type full cargo aircraft. At present, Shanghai Yuantong Dragon Investment has recruited 10 pilots, including 5 captains.

Yuweijiao's dream to let the Eastern and flexible cooperation fell through, Southern airlines caught the opportunity.

Some people in the aviation industry told reporters that the eastern airlines in the Aviation logistics extension of the industrial chain of positive attempts, such as into the field of electricity, the introduction of "direct" and other electrical products, the demand for express network is urgent. Eastern Airlines in the equity cooperation will be bound to their own express demand and tact to integrate, it is inevitable interference to yuantong business operations.

In comparison, the Southern airlines, although also around the expansion of the logistics industry chain of the core efforts to create a comprehensive logistics industry system, however, its approach has always been to strengthen the freight marketing and security capabilities, improve cargo station ground handling capacity and the construction of the ground truck network and other traditional models, to extend the services at both ends of the air cargo service, especially the courier's involvement is not deep. This makes yuantong feel "safe".

The above sources believe that in the Southern Airlines and flexible equity cooperation between the two sides are bound to compromise. He reckons that China Southern is not averse to having its own airlines, and may even offer some help, but the tact may limit the size of its own airlines to a limited range, rather than the Grand blueprint outlined earlier.

21st century Economic Report reporter to phase peak to verify, Shangfeng did not have a positive answer on the issue of the South Airlines acquisition case. But he admits that the current Yuantong air transport access to 118 airports, the route covers more than 600 cities, all rely on their own airline transport is obviously unrealistic, it is bound to cooperate with other airlines to ensure efficient service.

"Aviation + Express" easier

Wang Lei believes that the airlines and express hands are strong together, in the express, electric and potential development of the vast sea Amoy business cooperation, will certainly be able to form an industrial aircraft carrier, is a win-win situation. Express companies use the aviation network in particular international lines can make express business rapidly towards international development, while airlines due to the passenger part of the profitability of weak, the need to increase the profitability of freight, so their combination is also to protect the airline profitability can rise.

Xu pointed out that the current express and aviation industry in the upstream and downstream integration of the trend is increasingly obvious, such as the Eastern Airlines not only cross-border operators, but also to apply for express license plate to build express network. Hainan Airlines is an early investment in the Daily Express, but also from the establishment of electric business platform. As for express companies, some build electric business platform, and some actively prepare airlines. In addition to tact, Shun Fung also has its own airlines, as of April this year, Shun Fung has a full cargo aircraft has reached 15.

In Xu's view, under the trend of upstream and downstream industries convergence, similar equity cooperation is expected to occur again in other airlines and courier companies, especially the Eastern Airlines.

Eastern airlines have also admitted to reporters, even if not with tact talk, the future will still be with other express logistics enterprises to discuss cooperation. China Eastern Logistics company general Manager Li Xiupeng September 3 in the Air Cargo Development Forum has made clear that the airlines themselves can not solve the problem of airlines, from a higher level, that is, logistics solutions or supply chain management level, to the system to solve the perennial loss of airlines.

Li Xiupeng revealed that China cargo in 2013, a substantial losses, and further losses in the first half of this year, its traditional cargo station business revenue has also increased. Last year, just started groping, did a 50 million yuan business, the first half of this year, we mainly do logistics solutions on the income of nearly 200 million yuan. ”

Who will be the next partner of Eastern Airlines? Eastern Airlines, said the east Airlines will pick the network and the size of the top of the courier company. However, as Xu pointed out, the state-owned airlines and private Courier has a huge cultural gap between the institutional mechanisms are completely different, both sides of the future business cooperation is easy, cultural integration is difficult.