Editor’s note: The broader market takes a strong momentum, and the new game is opened. As one of the protagonists of the largest bankruptcy reorganization case since the founding of the People’s Republic of China, the reorganization and changes of HNA Airlines have always attracted much attention.
On the one hand, as HNA’s bankruptcy reorganization with a huge debt of “trillion” level, it is destined that its subsequent operation and management reorganization will be extremely complex and arduous, and there is a long way to go; Come to the “darkest” hour.
The “Fangda Experience” is undoubtedly a meaningful attempt and exploration in the new field of civil aviation. Under heavy pressure, whether the “Fangda Model” can be successfully replicated again is undoubtedly an unprecedented challenge.
After half a year of management reorganization, what has changed in the new HNA, and where will it fly in the future? The author walked into the new HNA after joining Fangda.
On December 8, 2021, the actual control of HNA Aviation’s operation and management was officially handed over, marking that HNA Aviation joined Liaoning Fangda Group and started a new voyage at a new historical starting point.
“HNA Aviation must adhere to the leadership of party building, build the world‘s first airline in terms of safety, service, and profit, and create material and spiritual happiness for all employees.” Fang Wei, chairman of the board of directors of Fangda Group, was the first cadre of employees at HNA. The solemn announcement at the conference opened the curtain for the reform and development of the new HNA.
Safety ranks first, the rule of man is changed to the rule of law, the old company develops new branches… After half a year, when we entered HNA again, in the story of the reorganization, we can strongly feel the core of Fangda Group’s corporate culture: Party building is the soul , People-oriented, system management of enterprises, and return to society.
Party building on the blue sky
Party building pilots and defends the “lifeline”.
Recently, “Northwest Civil Aviation” magazine focused on reporting “Promoting Safety through Party Building and Deeply Integrating Party Building and Business – Documentary on the Construction of Chang’an Airlines’ “Party Member Business Core Team”, which was promoted by the Northwest Bureau of Civil Aviation as a topic.
The party building of Changan Airlines is a typical epitome of the many cases of new HNA’s grasping party building.
“Safety is the lifeblood of the civil aviation industry.” Enter the safety management committee through the party secretary; require at least one chairman and president of each airline to have a flight background, increase the staffing of the management team and professional flight management cadres at all levels; invest more than 4 billion yuan in aviation materials and maintenance funds; pilot hourly fees An increase of 10%… Hainan Airlines promotes safety by doing a good job in party building, and effectively realizes that “hidden dangers remain on the ground, and heaven must be safe”.
New HNA integrates party building with production and operation, uses party building to empower enterprise development, and transforms party leadership and organizational advantages into competitive advantages and development advantages of the enterprise.
At the beginning of the reorganization, in the face of HNA, who had just stepped out of the “ICU”, how to quickly rebuild its spirit?
Walking into the new HNA, the slogan “Listen to the Party, Follow the Party” is striking, and the slogan “Operating an enterprise must be beneficial to the government, the enterprise, the employees, and the passengers” can be seen everywhere. Corporate values.
Each airline company has set up full-time party committee secretaries, and has set up full-time party building organizations at all levels; established a normalized work and study mechanism, and party organizations at all levels have organized more than 5,300 special learning activities and party committee special democratic life meetings, covering more than 670 party organizations, covering More than 50,000 party members and masses.
Party building on the blue sky, bright national flags, red-themed boarding music, party members and crew members wearing party emblems to show their identity… Strong red genes, sincere service from the heart, the new HNA shows the new atmosphere of party building leadership everywhere.
Party building pilots, Hainan Airlines employees have internalized safety first, passengers first, and sincere service in their hearts and externalized them in their actions. They deeply understand that if the party building work is done well, it is cohesion, and it is productivity. When it is done, it is competition. force.
“Listen to the party’s words, follow the party’s words”, although it is seven words, it is powerful.
Manage benefits
Fine management, everyone “I want to do it”.
In “The Miracle of JAL”, which is regarded as a management textbook, Kazuo Inamori’s “first fire” is to lay off 16,500 people, accounting for one-third of the total number of employees, and pay 81.7 billion yen for JAL to reduce its labor force every year.
Indeed, in the process of corporate mergers and acquisitions, “reducing staff and increasing efficiency” is a common measure. However, Fangda Group adheres to the consistent practice of “three no reductions”: no reduction of one employee, no reduction of a penny of wages for employees, and no reduction of employees’ welfare benefits.
Do not reduce this, then reduce the other. Fangda Group, which did not do the article of “reducing staff and increasing efficiency”, once again chose the most difficult but most beautiful path – reducing costs and increasing efficiency, and made it to the extreme.
The purchasing team negotiated with the shipping agency and confirmed the refund amount of 30,813 yuan through deduction; the aviation material warehouse canceled the outsourced distribution company whose original price was higher than the market price, and coordinated the use of its own three vans, which can save 194 yuan a year. million…
Since April 19, Fang Wei has personally led the team to go deep into the front line to tap potentials and plug leaks, and “eat, live and struggle together” with the employees of the production base, and has issued a total of 2,125 supervision suggestions (including safety and thickening supervision suggestions). 290 projects), it is expected to achieve an annual profit of 515 million yuan. The warehouse has been fully cleared and inspected, and the inventory of aviation materials and spare parts with a service life of more than one year has exceeded 10 billion yuan.
Unity from top to bottom, with the blade inward, self-revolution, comprehensively blocking the leaks, and cracking down on various violations of corporate interests in accordance with laws and regulations. Behind the little bit, there is hard sweat and courage to fight, which shows the power of gathering sand into a tower, and it also condenses the transformation of new HNA employees’ concept and management.
“What is refined management? It means that you don’t make money for a while, you want to make money for the rest of your life; pick your bones; treat the enterprise as your own home.” This unique concept formed by Fang Da’s years of practice is becoming more and more popular in the new HNA. .
mechanism activation
When you play chess, you can live on the whole board.
People or those people, what inspires the huge capabilities of each employee of HNA from top to bottom, and sets off a management change with full participation?
“Injecting funds and inputting mechanisms without assigning one person” is the management model of mergers, acquisitions, restructuring, and mixed-ownership reform that Fangda Group has always adhered to.
Implementing the principle of “doing what you get, and not capping it”, HNA has formulated and issued more than 100 incentive systems, including profit commissions and rewards for blocking, running, dripping, and leaking. 38 million yuan.
Carrying out “horse racing” for all employees, HNA takes safety as the premise, compares itself with itself, with its brother airlines, and with the market, with advanced benchmarking, aiming at the goal of “safety, service and profit as the world‘s first airline”, and establishes a comprehensive Staff, comprehensive and all-round “horse racing” mechanism, “there is gold mountain in front, tiger in the back”, “there is reward and punishment, and the reward is greater than the punishment”.
Realize the transition from “rule of man” to “rule of law”, and comprehensively standardize corporate governance. Over the past six months, more than 1,300 management systems have been added or revised in 18 business systems, so that every employee can feel fairness and justice in system management.
Adhere to the development of the enterprise for the employees, the development depends on the employees, and the development results are shared by the employees. Expenditure over 100 million yuan to repay the wages owed by the old HNA and restore the original benefits; at the same time, it launched free working meals, filial piety allowances, medical expenses subsidies and other special benefits of Fangda, realizing “one person is in Fangda, the whole family is guaranteed, and benefits for life. “.
Whoever has the same desire will win.
The new mechanism has given birth to new vitality, everyone is striving to be the first, and the management is “galloping horses”, bringing about earth-shaking changes in the enterprise.
Fulfill the promise and keep the original intention
Stand out from the siege and prepare for the hardships.
Some people say that the aviation industry has entered the most difficult time. According to statistics, from the outbreak of the epidemic in 2020 to February this year, domestic airlines lost as much as 165 billion yuan, which is equivalent to losing the total profit of the past five years from 2015 to 2019.
But for Xin HNA, which has just gone bankrupt and restructured, the pressure goes far beyond the market.
The first is the high debt-to-equity ratio. At the end of November 2021, the report shows that the debt ratio of the company after the reorganization is about 100%, which is much higher than the optimistic introduction of 65%-70% at the HNA Group Strategic Investor Promotion Conference in April 2021. In addition to the loss of more than 20 billion since 2021, there are still more than 100 long-term parked aircraft that require huge investment to return to service, as well as common debt, various operating arrears payments, etc., the 38 billion war investment fund is obviously stretched. With a high corporate debt ratio and limited financing capacity, New HNA is still moving forward with a heavy burden.
Obviously, the difficulties and difficulties of the new HNA are beyond the imagination of ordinary people. But in fact, the difficulties faced by the new HNA are far more than that.
On June 7, Hainan Airlines (a listed company) issued an announcement, revealing that the accumulative total amount of new lawsuits involved was RMB 165,475,300. It is understood that the entire HNA Airlines has more than 80 derivative lawsuits with a target amount of tens of billions of yuan due to some creditors disagreeing with the determination of the nature and amount of the creditor’s rights. The pressure and risk are self-evident.
At the same time, the equity transfer of some companies has not been completed; some of the assets involved in the war have property defects or limited rights; listed companies have not taken off their hats… Under heavy pressure, it is sometimes a dilemma to restore credit, strive for survival, and seek development. choice.
Safety and danger do not depend on their ambitions, and danger and ease do not change their minds.
It is the leadership of the party that gives HNA the opportunity to restructure and hope for rebirth. Fangda Group knows that taking over the baton of HNA aviation history represents a heavy trust and a heavy responsibility.
“In everything we do, we must not only consider the enterprise, but also consider the return and contribution to the society. We must love the party, the country, and the enterprise, and develop the enterprise in accordance with the requirements of the party and the country and the needs of the society.”
Therefore, increasing investment in safety, repaying employee wages, implementing new benefits, issuing commission rewards, repairing parked aircraft… In the face of crisis, New HNA practiced its original intention with persistence, responsibility and confidence.
Therefore, fulfilling its promise to repay the debt and interest, in the face of the first interest repayment, HNA Airlines did not hesitate to implement the reorganization plan. 1.3 billion in interest payments.
“During bankruptcy and reorganization, all kinds of information are kept secret, many information is unknown, and internal decision-making is not easy; it should be distributed according to the principle of who uses it and who bears it; after the reorganization, the debt is still high, even higher than before the reorganization, and the remaining debt will be It will aggravate the company’s operating difficulties.” When faced with the debt retention problem of the original HNA Group’s 10 billion yuan rescue loan, the state-owned shareholders of local airlines generally put forward appeals. In this regard, HNA Airlines is making efforts to communicate and try to solve it.
HNA Airlines is fortunate. In the face of huge financial pressure, the People’s Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission and other ministries and commissions are highly concerned and actively coordinated. Since the reorganization, Hainan Provincial Party Committee and Provincial Government, Civil Aviation Administration, and Party committees and governments at all levels Hainan Province even set up a special class, and the main leaders personally coordinated the deployment. Although various problems are still being solved due to various reasons, Xinhai Airlines is grateful and turns gratitude into a driving force for progress.
“Remember the party’s kindness and repay the society” is the original intention of Fangda Development. Although there is a long road ahead, I firmly believe that after the storm, there will be a rainbow. The future development of New HNA is promising, and it will “fly” out of the encirclement and soar above the clouds.