On Christmas Eve, Yuanshan Capital's office was crowded with people. Except for the employees on duty, most of the companies who came to the company today were at the leadership level, and several directors came, which made the employees whisper in private, thinking that something big had happened or that the company was preparing to make big moves.

Thinking of this, someone was ready to send messages to colleagues with good relationships. Everyone knew that once a large project led by the company started to operate, no matter whether it was successful or not, a big red envelope would not be eliminated afterwards.

In the big conference room, 11 directors gathered together. I don’t know what they could do. The momentum was one after another. Several of them whispered to each other and didn’t know what to say. The rest were either lowering their heads to play with their phones or closing their eyes to rest.

When it was 9 o'clock, the conference room door was pushed open again. Yang Cheng took the lead and walked in, followed by Liu Junyu in professional clothes, with a very strong sense of ownership.

Dangren sat in the position of the chairman. In the past, these were only a seat that Yang Sen could only sit, but it was not inconsistent to sit up.

Clearing his throat attracted everyone's attention and said loudly, "Everyone, I will preside over the board of directors today, and I will answer your questions one by one.

Let’s first answer a question that everyone is concerned about. Regarding Delta Air Lines’ dividend ratio, I need to emphasize one thing: this was approved by the Delta Air Lines board of directors, and this number has been unanimously recognized by the company.”

Someone couldn't help but ask, "jason, we think Delta's profits are not stable. Shouldn't we continue to maintain stable cash flow at this time to resist unknown risks?"

Another person stood up and said, "Yes, we think that the profits of all American airlines are currently at their highest level, but this does not mean that glory will continue. In some ways, the problems faced by all airlines have become worse because of the recent boom."

Yang Cheng asked, "For example?"

The director said with a stammer on his neck, "I heard that Delta is experiencing a wave of acquisitions, and the acquisition of Alitalia failed."

Yang Cheng laughed, "When will a failure of an acquisition become a low point? Didn't you expect that Delta Airlines had just acquired Korean Air before saying this?

That is the shipping hub in Northeast Asia and also a flag carrier aviation in South Korea. Its positive significance to Delta is no less than that of Alitalia, nor is it, far better than Alitalia.

I would like to reveal another news to you that Air Berlin is about to declare bankruptcy and Delta will participate in the bid for Air Berlin's assets. This is an airline that accounts for a quarter of the share of Germany, which is more conducive to our layout in the European low-cost airline field."

The director's supporting role retorted, "Well, even if the acquisition is not a big problem, what about the employees? Acquisition of Air Berlin will inevitably be required to accept all its employees. How many are there? More than 8,000, is it almost 10,000?

You should know that Delta Air Lines now has more than 80,000 employees worldwide, with a total of nearly 90,000 employees, and its expenses are still increasing at a rate of about 3% per year.

Now that we have rashly increased by nearly 10,000 employees, can this cost be borne by this expense?"

Before Yang Cheng could speak, the director who started talking responded, "I have to remind you that according to the news we have received, Southwest Airlines employees refused to sign labor contracts, and some people said their compensation did not match the performance of the aviation industry.

Federal regulators have launched two separate investigations to determine whether the largest airlines have violated competition regulations.

Once this news comes out, shareholders and investors who are worried about whether airlines can continue their excellent performance will inevitably sell their stocks. Should we leave some cash to resist this crisis?"

Yang Cheng has to admit that these directors are still very good at making trouble, and at least they can tell some real information. Yes, the performance of airlines in operational business may have reached the best level in aviation history, but at the same time, airlines are also under pressure from many aspects.

The aviation industry has been restructuring and integration for many years, and the management is more focused on factors such as profitability and falling oil prices, which have benefited.

Fuel costs have also fallen from the largest cost of airlines to the second largest cost behind labor costs.

This has also led to major companies with good financial conditions announcing large-scale stock buyback plans, which are currently repairing their asset and liability positions and investing in their products.

Aircraft carry rates are also higher than ever, and air travelers are expected to hit an all-time high in the summer next year.

However, while airline costs have dropped sharply, pushing up profits, the decline in airlines’ unit revenue has weakened airlines’ unit revenue, which measures the income per passenger’s flight one mile.

This is also an indicator that investors, including Wall Street, are paying the most attention to. Profits are indeed growing, but airlines' unit revenue has dropped sharply. This is a hidden danger, which has caused investors to suspect that the market is about to usher in a turning point.

Once these investors use more evidence to confirm their conjecture, a crazy sell-off is coming.

From this perspective, the questions of these directors are also reasonable.

However, Delta Air Lines executives, including Yang Cheng, even insiders in the entire industry, are normal. The gradually reduced expenditure costs push up profits. It is imperative to take the opportunity to organize the company's assets and liabilities, and at the same time, it takes a lot of energy to maintain employees' work enthusiasm.

To the senior management, it is completely worthwhile to buy employees' loyalty with US$2 billion, and it is better than those companies that are facing a wave of employee resignations?

As for the dissatisfaction of small companies, they will not take it seriously at all. This is the ecological cycle. If your small company is not strong enough, don’t blame your employees for changing jobs.

Of course, the directors' concerns actually have plans within Delta Air Lines. The financial department has already leaked enough operating cash flow. The 2 billion dividend was decided to issue after fully considering all the risks. The directors were overthinking.

However, Yang Cheng also knew that these reasons just now were just excuses that the directors deliberately found. The real reason was just like what I analyzed with my father last night, and I wanted to use Delta Airlines as my back garden.
Chapter completed!