Does anyone know about China Aviation Oil Group?

At present, CAO is probably the youngest among many enterprises in China that have hit the top 500 in the world.

China people's understanding of this young and growing company mainly comes from some sporadic information, some of which once became sensational news.

The Chen Jiulin case broke out at the end of 2004, which made the originally unknown CAO famous.

In 2007, because Eagle United Airlines defaulted on the payment for jet fuel, China Aviation Oil North China Company flatly refused to continue to supply oil to it, resulting in the detention of passengers, and various media reported one after another.

In 2008, CAO won a great reputation for its excellent air transportation during the fight against freezing rain and snow, earthquake relief and the Olympic Games.

In 2009, East Star Airlines announced that it had entered bankruptcy proceedings, which brought bad debt risk to CAO. ...

In the above information, the public still sees the appearance of CAO. Most people don't understand the nature of CAO, and even have many misunderstandings. ...

1, starting point: monopoly original sin?

In recent years, the rapid development of state-owned enterprises is amazing and raises questions. Accusations about "profiteering by monopoly" of large state-owned enterprises in China are constantly appearing. Whether there is the original sin of monopoly in state-owned enterprises has become a key topic in economic research and debate, and it is also a basic premise to evaluate state-owned enterprises.

Without exception, young China Aviation Oil has also been involved in the whirlpool of monopoly original sin.

What's the truth?

Zhou Rucheng, member of the Standing Committee of the Party Committee of China Aviation Oil Group Corporation and president of China Aviation Oil Co., Ltd., is an expert who has been involved in aviation oil system for a long time. He not only knows the historical changes of China Aviation Oil, but also is familiar with aviation oil business. The China Aviation Oil Company led by him is the core sector of China Aviation Oil Group and the main supplier of China aviation oil market. Speaking of the public's doubts about China's aviation fuel monopoly, Zhou Rucheng is very calm. He thinks this is normal. Because for a very professional and special market like jet fuel, it is impossible for the general public to understand it deeply.

"It is indeed a misunderstanding to say that China has monopolized jet fuel." Zhou Rucheng said, "No matter from the perspective of economics or from the perspective of objective facts, this is not true. We can't control the supply of goods in the upstream, determine the price of goods in the downstream, and prevent market access. Where can we talk about monopoly? "

CAO must purchase jet fuel from its upstream suppliers such as China Petroleum (9.66, -0.02, -0.2 1%), China Petrochemical (7.40, -0.02, -0.27%) and other domestic petroleum and petrochemical enterprises and the international market, and provide jet fuel to its downstream airlines through transportation, storage, distribution and filling. As an important national strategic material, the ex-factory price of jet fuel is determined by the National Development and Reform Commission, and the sales price is determined by the Civil Aviation Administration. In the face of such a mechanism, even if CAO wants to monopolize, I am afraid there is nothing it can do.

In addition, the aviation fuel market in China is not exclusively operated by CAO. Nearly 50% of the jet fuel market share in South China is held by overseas companies; Nearly 50% of jet fuel supply in developed areas such as Shanghai, Nanjing, Shenzhen and Yantai has long been separated from China jet fuel. In Hainan province, CAO occupies only a negligible share in Sanya.

The public is unaware of the above situation.

The public's suspicion of China's aviation fuel monopoly seems to be mainly due to the common scarlet letter "fuel surcharge" printed on airline tickets and the fact that the domestic aviation fuel price was higher than that of foreign countries.

In recent years, with the skyrocketing international crude oil prices, the price of jet fuel has also been rising. The proportion of jet fuel in airline operating costs is also increasing. In order to cope with rising costs, domestic airlines have introduced "fuel surcharges" with the approval of relevant state departments. Domestic routes over 800 kilometers are charged 100 yuan per person, and 60 yuan is charged per person below 800 kilometers. According to the calculation of 654.38+0.6 billion passengers, in 2007, domestic passengers paid a total fuel surcharge of nearly 654.38+0.0 billion yuan.

Because this fee is called "fuel", many people mistakenly think that this fee must be taken by CAO.

"In fact, the fuel surcharge has nothing to do with CAO. We don't know whether the fuel surcharge is 654.38+000 billion a year. This money does not belong to CAO. " Zhou Yucheng explained.

There is one last question about monopoly: Does policy monopoly exist?

The reporter asked Zhou Rucheng: The reform of civil aviation system has put forward the requirement of "gradually opening the aviation fuel market and introducing competition mechanism". How far has it come now?

Zhou Rucheng replied: "The agreement of 200 1 accession to the WTO and the Regulations on the Administration of Domestic Investment in Civil Aviation Industry (Trial) implemented in 2005 have confirmed that the aviation fuel market is completely open. Like the whole world, there are barriers to entry in the aviation fuel market. This threshold is the minimum standard of airworthiness, which is determined by the national administrative regulations. China aviation fuel market will welcome all domestic and foreign enterprises that meet the access conditions with open arms. This is the case in many industries. "

Regarding the problem that the domestic jet fuel price was once higher than the international oil price, Zhou Rucheng said that the jet fuel price in our country, together with the gasoline and diesel prices, has always been in line with the international standards, and was determined by the National Development and Reform Commission according to the changes in international oil prices and the actual development of the national economy. Because of the time problem of adjustment, the price of jet fuel has been higher than that of international jet fuel, but it has also been lower than that of international jet fuel. For example, when the international oil price reached an all-time high of 147 USD last year, the domestic jet fuel price was lower than the international oil price for a long time, but overall, the domestic jet fuel price was consistent with the international jet fuel price.

Having said that, the problem of alleged monopoly of CAO should be basically clarified.

2. Risk explanation

Zhou Rucheng believes that instead of enjoying the food and clothing of monopoly companies, CAO should always guard against risks. As far as operational risk is concerned, the speculative loss of futures of Singapore companies is a special case, and the daily risk mainly comes from a large amount of debts owed by customers. This is a big problem in the operation of CAO.

This is the "rule" left over from history: refuel first, then pay.

The arrears of airlines have brought heavy financial pressure to CAO. At the end of 2008, a considerable number of airlines owed money for about 50 days, much higher than the normal period of 15 days. At the peak, the airlines owed China Aviation Oil 654.38+0.6 billion yuan, which made the company overwhelmed.

Once the payment in arrears exceeds the company's affordability, resulting in a tight capital chain, then the operation of CAO will face difficulties. Once the customers who are in arrears declare bankruptcy, CAO will suffer even greater losses.

It was in this situation that the Eagle United grounded. Since July 17, 2007, one flight of Chengdu Eagle United Airlines in Shijiazhuang has been grounded one after another because of its long-term arrears. China Aviation Oil North China Company took measures to stop the supply of its flights in accordance with the law when the long-term dunning was invalid, but the public directly pointed the finger at China Aviation Oil.

Pu Guangji, general manager of corporate culture department of China Aviation Oil Group, said: Eagle United Airlines has been in arrears for a long time. The default period is 50 days, the longest is 109 days, and the contract period is 15 days. This means that CAO has to pay a lot of money to provide services. The service is useless, and the oil money paid is a loan borrowed by CAO from the bank. The airline will never pay interest on the loan to CAO. At that time, the price of 1 ton oil was 4,000 to 5,000 yuan, and the aircraft refueled a lot. Especially for a small company like Hebei Branch of North China Company, it simply can't afford so much money to advance fuel for airlines, not to mention that a pad is 100 days. A small branch, tens of millions of oil money is in arrears, it will continue to borrow money from the bank to buy oil, and continue to pay a lot of interest for airlines for free. It was originally 15 days, but it was delayed to 100 days, which was a bit too much. North China company really has no other way to think. It is our mission and duty to provide the best service to our customers. We tried our best. Efforts have directly threatened the basic conditions for us to provide services to our customers. In other words, I can't live if I go on like this. How can I serve our customers?

When Pu Guangji said this, he couldn't help thinking about the predatory exploitation of mineral resources.

"We never want to announce such news," Guangji said, "because it is very bad for airlines. For example, Eagle United Airlines is our customer after all. How much we hope to solve the problem through consultation and negotiation! Why do we have to let things develop to the point where one side has to take "legitimate defense"? ! Because the public doesn't know the inside story, the misunderstanding is caused by CAO's "hegemony". China Aviation Oil, which is full of rationality, was originally unreasonable; Not only under the pressure of passengers, but also under great pressure from public opinion. Now we have learned our lesson. If similar incidents happen again in the future, we will make an announcement to passengers and the media in advance and notify relevant agencies. Although Eagle United Airlines was notified several days in advance according to the contract, on the one hand, Eagle United Airlines did not listen to our advice to do a good job in the aftermath of passengers, on the other hand, we did not announce it to the society and passengers. This is why we are misunderstood.

Zhou Rucheng said that as an enterprise integrating transportation, commerce and logistics, CAO has always emphasized a harmonious corporate culture of "harmony is the most important" and "harmony makes money". Mr. Zhou himself often patronizes airlines. His superior, Sun Li, the general manager of CAO Group, as the top leader of CAO, also travels among customers all the year round, visiting and communicating, and sincerely "convince people with reason, convince people with affection, and strive to reduce airline arrears".

China's aviation fuel arrears have a long history. Some airlines think that the profits of CAO are earned from them, and they have difficulties in operating, so they try to breach the contract. In addition, in the past, insufficient communication between CAO and customers led to the continuous accumulation of fuel arrears, which became a long-standing problem in the operation and development of CAO.

Thanks to the joint efforts of the company's senior leaders and the vast number of employees of CAO, airlines gradually realized the difficulties and pressures that Cao had suffered, and gradually cleared their debts. The reporter saw from a report of Air China that by the end of June 2009, the company's balance of accounts receivable had dropped to 5.08 billion yuan, a decrease of 2.22 billion yuan from the beginning of the year; The settlement period is 2.883 billion yuan, and the historical arrears are 265.438+0.97 billion yuan, which are 65.438+0./kloc-0.07 billion yuan and 65.438+0./kloc-0.03 billion yuan lower than the beginning of the year respectively. All the historical arrears of Eagle United Airlines were successfully recovered, and the historical arrears of Hainan Airlines and Shenzhen Airlines were basically settled, greatly reducing the risk of bad debts.

3. Professional strength

Zhou Rucheng said that some companies have two misunderstandings. One is that it is easy to refuel the plane, and the other is that the profit is very rich. In fact, jet fuel filling is a very fine part of the aviation industry chain, and it is also a very professional job. Professionalism is reflected in the fact that jet fuel supply is a highly technical job, and something will happen if you are not careful. In addition, non-professional companies can't improve their skills in purchasing, warehousing, transportation and refueling, which will greatly increase costs. Most outside companies can't make money by doing jet fuel business.

But this does not affect the development of CAO. Zhou Rucheng said that in fact, Air China Oil Company has a lot of room for development. The key is to make characteristics and standards in specialization to adapt to this low-profit operation. Among them, the most important one is to reduce costs.

Only by deeply understanding the jet fuel market in China and its operating mechanism can we deeply understand the scientific nature of Zhou Rucheng's understanding.

In 2006, China Aviation Oil Group Company put forward "three strategies" of resources, market and internationalization. Based on the "three strategies" of the parent company, China Aviation Oil Co., Ltd. added "low cost strategy" to itself according to its own situation, which was recognized by Sun Li, general manager of the group company.

Zhou Rucheng believes that if you want to provide value-added services to airlines, you must reduce your own operation and management costs. Scale expansion does not mean that profits will definitely increase. Unless the cost is effectively controlled, the importance of low-cost strategy will be highlighted.

Zhou Rucheng demanded that efforts should be made to strengthen procurement cost accounting and refined management of aviation fuel procurement. Strive for preferential purchase price by actively communicating with suppliers, and reduce purchase cost by means of centralized bidding and fixed price procurement; We will continue to strengthen the budget control of the procurement cost per ton of oil and the three expenses, and ensure that the procurement cost per ton of oil decreases year by year by optimizing resource allocation and reducing business process links.

To reduce the procurement cost, for a company with annual sales of tens of millions of tons, if 5 yuan money is reduced per ton, the next thing is a profit of 50 million yuan. CAO will also introduce infrastructure technical specifications, engineering accounting management methods, equipment supply catalogue, project payment management methods and other systems to reduce costs from the system, including carefully studying the price trend of jet fuel at home and abroad, accurately grasping the procurement opportunity of jet fuel, rationally allocating international and domestic jet fuel resources, controlling inventory in time, minimizing procurement costs and improving gross profit space.

In the first half of 2009, the sales of China Aviation Oil Co., Ltd. increased by 65,438+00.78% year-on-year, but the operating, financial and management expenses decreased by 265,438+0% year-on-year.

4. Social emotion

Pu Guangji said that for a struggling company like CAO, if we must say monopoly, it is to monopolize those businesses that lose money and monopolize social responsibility.

At present, CAO operates the aviation fuel supply of more than 40 airports in China/KLOC-0, of which more than 80% is at a loss. Especially in the midwest, almost every airport is losing money. For example, in Tibet, the average transportation fee per ton of oil in the mainland is only 120 yuan, and the transportation fee to Tibet has increased to 3,000 yuan. Knowing that supplying oil to Tibet would cause losses, China Aviation Oil Corporation and the local civil aviation administration set up a Tibet company and organized a fleet of dozens of tankers to transport it from Lanzhou through the Qinghai-Tibet Highway, which took nearly a week. Due to the rising cost of long-distance transportation, the cost of jet fuel per ton has increased by more than 2000 yuan. The more supply, the greater the loss. "However, we still have to ensure the supply. First, because of the mission of CAO-'serving the global civil aviation customers wholeheartedly and ensuring the safety of national aviation fuel supply'; Say it, do it. The second is to bear the social responsibility of central enterprises that CAO has to bear for the economic development of Tibet. "

"The public can't understand these situations, and even people in the civil aviation industry don't have to." Zhou Yucheng said.

In 2008, China Aviation Oil won a great reputation because of their outstanding work in fighting snow and ice disasters, earthquake relief and ensuring aircraft transportation during the Olympic Games.

In 2008, the freezing rain and snow disaster in the south, Wenchuan earthquake suddenly. With the deterioration of transportation conditions and the emergency of jet fuel supply in disaster areas, CAO has responded quickly. On the one hand, coordinate petroleum, petrochemical, State Reserve Bureau and other units to quickly organize oil sources; On the other hand, the General Logistics Department, the Ministry of Railways and other units are urgently coordinated to increase transportation capacity, so as to ensure the supply of aviation fuel with the fastest speed, the shortest time and the best service, and ensure the smooth flow of the "lifeline of aviation disaster relief".

During the "5. 12" Wenchuan earthquake, China Aviation Oil Co., Ltd. refueled 1.809 disaster relief planes1.5000 tons, and guaranteed 65 special planes, which ensured the transportation of disaster relief personnel, victims, disinfection and epidemic prevention planes and materials in time. In order to ensure the oil supply for the rescue giant helicopter in the Tangjiashan dammed lake in Beichuan, Pu, the winner of the "May 1 Labor Medal", risked the aftershock to cause car damage and death, and led the motorcade into Tangjiashan in Beichuan. At all costs, he fulfilled the promise that "CAAC oil will be added wherever the disaster relief plane flies" and won worldwide attention and praise.

During the Olympic Games, in the face of unprecedented concentration and frequent flight changes, CAO properly handled the complicated situation of the increase, decrease and temporary change of special planes and charter flights of heads of state. Refueling 830,400 tons for 122 10000 flight, and ensuring 8857 flights involving the Olympics, achieving the goal of zero error, zero accident, zero delay and zero complaint in Olympic fuel supply. In the history of civil aviation development, it has set a series of records, such as 8422 tons of refueling in a single air service station, 85 flights of special plane 13, 85 flights of chartered plane, and 0/62 flights of Olympic-related flights, and fulfilled China Aviation Oil's promise of "ensuring the Olympic fuel supply with the highest standards, the best state and the best service".

After being called "three beautiful battles in 2008" by CAO employees, the external environment of CAO has changed greatly.

Before 2008, in view of the high proportion of jet fuel in flight costs, many airport and airline leaders wanted to take Malaysia Airlines' oil supply projects themselves. The performance of CAO in the snowstorm, earthquake and Olympic oil supply in 2008 made many airlines see the professional requirements and difficulties of aviation oil supply operation, thus deepening their understanding and understanding of CAO.

Now, more and more airports are willing to hand over jet fuel to CAO, thinking that it is safer and cheaper than other airports or companies. This change is called "professional division of labor is recognized by the market" by CAO.

5, the heart of gratitude

The history of CAO can be traced back to 1990 at the earliest. Before 1990, aviation fuel business was mainly managed and allocated by the air force and the government, playing the rules of the game of planned economy. 198 1 year, civil aviation broke away from the army, and the Civil Aviation Administration became a directly affiliated institution of the State Council. Aviation fuel and related businesses are under the responsibility of the Civil Aviation Administration, the Regional Administration and the Petroleum Department (branch) of the Provincial Bureau. With the deepening of the civil aviation system reform and the birth of China Hyundai Airlines, it is obvious that the situation that the government distributes jet fuel to enterprises cannot continue. Therefore, China Aviation Oil Company was established at the beginning of 1990, and the supply of aviation oil was commercialized.

Realizing enterprise is not equal to realizing marketization.

The key change of China Aviation Oil took place in 2002. This year, 9 airlines and 4 service guarantee enterprises of the former Civil Aviation Administration of China were jointly reorganized. China Aviation Oil Group Corporation, as a reorganized civil aviation security enterprise, was formally established on June 5438+ 10, 2002, and has since become a large central enterprise directly under the State-owned Assets Supervision and Administration Commission of the State Council.

In the past six years, CAO has refueled 74 1 10,000 aircraft, and there has never been any safety accident.

In 2008, the number of oil supply airports of China Aviation Oil Co., Ltd. increased from 126 in 2007 to 142; The annual sales of jet fuel is ... 10,000 tons. China Aviation Oil Group mainly ensures the supply of aviation oil at domestic airports through China Aviation Oil Co., Ltd. ..

Now China Aviation Oil Group has put forward an international aviation oil company with strong competitiveness and industry influence, which will become one of the top 500 companies in the world in 20 15, and the sales volume, sales revenue and asset scale of aviation oil will double that of 2008. In this goal, CAO still plays the most important role. Zhou Rucheng, the president, is ambitious and determined to build the company into an international aviation oil specialized company "No.1 in Asia and No.1 in the world".

China Aviation Oil Group, a seven-year-old company, proposed to enter the world's top 500 when it was founded 13. Anyway, this is exciting news.

According to the medium and long-term development plan of China civil aviation, by 20 15 and 2020, the number of airports in China will increase to 200 and 244 respectively, and the consumption of jet fuel will increase to 27.97 million tons and 43.04 million tons respectively, which makes China jet fuel full of confidence in its proposal of "doubling its sales volume and entering the top 500 in the world".

One question is that since CAO is not a monopoly, the huge development of China's civil aviation market does not mean that the demand for jet fuel provided by this market must be completely occupied by CAO. Why is China Aviation Oil so optimistic? Zhou Rucheng replied: Our technology, equipment and services are all moving towards internationalization. Moreover, several generations of China Aviation Oil have accumulated extremely valuable material foundation and management experience for us for decades, and built an aviation oil supply system that others can't build in a short time, including storage, supply, transportation, testing and filling equipment and facilities and a huge sales network. Compared with new competitors, we are sure that our cost is low and our channels are mature. So it is not easy for other companies at home and abroad to squeeze out our market share, because they have to calculate the cost.

Zhou Rucheng hopes to provide aviation fuel service support for airlines to expand their markets in more regional airports. The turnover of passenger and cargo transportation in regional airports is not large, and the operating cost of airlines is high. If the regional airport can't provide jet fuel supply, airlines will have to reduce the load, because they bring more return jet fuel, which will increase the transportation cost. At the same time, the social responsibility of CAO also requires it to provide aviation fuel services for airlines in more regional airports. At present, CAO is signing oil supply contracts with some newly navigable regional airports. "No matter whether you make money or not, CAO must do this!" Sun said:

It is particularly noteworthy that Sun Li, the general manager of the group company, has always stressed internally that CAO must always be grateful. This is especially true when China Aviation Oil Company puts forward the goal of being one of the top 500 companies in the world and expands its market share.

Zhou Rucheng said that CAO is grateful to our upstream and downstream.

Upstream thanks PetroChina, Sinopec, CNOOC, Dalian Western Pacific (7. 14, 0.02, 0.28%) and other suppliers, including international suppliers. Aviation oil imported from abroad accounts for more than 40% of China's domestic demand, and CAO has signed some strategic intentions of long-term cooperation with several large foreign oil companies.

Previously, it was widely believed that China Petroleum and China Petrochemical would conflict with CAO in the supply of jet fuel. Zhou Rucheng explained that we actually cooperated very well. In 2006, China Aviation Oil Co., Ltd. was reorganized, and China Petroleum and China Petrochemical became shareholders of China Aviation Oil Co., Ltd., which produced a good effect of equity change. The oil supply of China Petroleum and China Petrochemical Group to China Aviation Oil increased from 82% in 2006 to 1 14% in 2007. Over 14% and under 18%, these two simple figures are of great significance, because they reflect the social responsibility of these two groups when the domestic and international aviation fuel prices are upside down.

Downstream should thank the airlines. Because of gratitude, every time we talk about the arrears of airlines, CAAC, from the president to the ordinary employees, emphasizes that airlines are our customers, and we should do our best to safeguard the reputation of customers and try our best to solve the problem through consultation. Zhou Rucheng said, we should always remember that CAO has developed with the rapid growth of China's civil aviation industry, and we will develop together in the future. As our general manager Sun asked, we should always be grateful and repay our customers.