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Is there a problem of poor management behind Longjiang aviation auction?

Longjiang Airlines is a private airline in Northeast China, registered in Harbin. Initially, Harbin Yu Xiang Gold Products Sales Co., Ltd. invested 800 million yuan, accounting for 65,438+000% of the registered capital. After several equity adjustments, this auction is part of the equity value projects of Longjiang Airlines shareholders, including 665,438+0% equity held by Harbin Yaxiang Aviation Construction Investment Co., Ltd. and 37% equity held by Harbin Yu Xiang Gold Products Sales Co., Ltd. This auction of Longjiang Airlines is partly due to poor management, partly due to the objective factors of the particularity of the civil aviation industry, and partly due to the influence of COVID-19, which has caused the stagnation of civil aviation transportation and has a great impact on many airlines.

First, poor management.

Longjiang Airlines * * * has three A320 aircraft and two A32 1 aircraft, all of which are short-haul routes, with limited operational capacity and capacity. The promoter of the company is not a professional civil aviation background and lacks industry experience. After several years' establishment, its operating conditions are not good, and its popularity and influence are far behind those of Chunqiu and Okay, both private airlines. Second, industry barriers and high technical requirements.

Civil aviation is an industry that requires high resources and scale. The cost of buying a civil airliner is also quite high, and flight and maintenance personnel are also highly skilled positions, which are difficult to recruit. Therefore, it is really difficult for small and medium-sized airlines to enter this industry and gain a foothold. Third, the impact of the COVID-19 epidemic.

The outbreak of COVID-19 epidemic has made the civil aviation industry worse. In the first half of the severe epidemic, many routes were grounded and resumed in time, and the number of passengers was much less than in previous years. Basically they lose money every day. It is very normal for small companies to survive the epidemic, be auctioned or merged and reorganized. Do you have any good ideas about the auction of Longjiang Airlines, poor management, the particularity of the industry and the influence of COVID-19? Welcome to discuss them in the comments section.