Chapter 144: Chapter 144: Airline Without Flight Attendants
When Lanster returned from Detroit, Hardy reviewed the contract between HD Security and General Knudsen. The annual consultancy fee was set at 20,000 yuan, with additional benefits for significant contributions to the company. Contributions included helping with company issues or leveraging relationships, all of which justified bonuses.
"Lanster, I've made an oral agreement with General Williams to integrate 1,000 veterans and soldiers annually. We should select the best candidates. There's no formal contract, but this commitment will propel HD Security into a rapid growth phase."
"Focus on establishing a presence in San Francisco and setting up a branch in New York. From now on, New York will be the headquarters for HD Security on the East Coast."
Hardy then handed Lanster a manuscript outlining his vision for the security company's future. The scope was expansive, covering everything from private prisons and defense services to independent intelligence consulting and even mercenary operations.
Lanster reviewed the manuscript with growing excitement. Hardy's vision was bold and transformative, and Lanster was thrilled at the prospect of contributing to such an ambitious plan.
"I will do my best," Lanster said firmly.
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A week after issuing the recruitment advertisement for HD Airlines, many inquiries were received. On the day of the recruitment meeting, Hardy attended personally.
Among the candidates was a middle-aged man named Mousse, who had an impressive resume, including a recent role as an assistant president at United Airlines.
"Mr. Mousse, how would you manage HD Airlines if you were appointed president?" Andy asked.
Mousse spoke confidently about setting operational goals, team-building, and maintaining smooth communication with various stakeholders. Despite his articulate responses, Hardy felt he lacked the pioneering spirit needed for the role.
Other candidates, including operations directors from other airlines and a former deputy general manager of Pan Am, were also interviewed. None impressed Hardy enough to advance.
Finally, John Franklin, a 37-year-old with experience as an executive general manager of a small Texas airline and a current operations manager at United Airlines, walked in.
"Mr. Franklin, how would you manage HD Airlines as president?"
Franklin, well-prepared, pointed out the current problems in the airline industry: the focus on long-haul flights, high service costs, and luxurious amenities driving up prices. He advocated for reducing costs by eliminating unnecessary services and lowering fares.
"I believe we should cut some services to reduce operating costs. Many airlines focus on luxury and high costs, but my approach is to lower fares to attract more customers," Franklin explained.
Hardy was intrigued. Franklin's vision aligned with Hardy's own strategy for a low-cost airline.
"Mr. Franklin, what are your salary expectations?" Hardy inquired.
Franklin requested an annual salary of $10,000 and a 6% share in management equity, increasing every two years starting from the fourth year, with a cap of 6%.
Hardy agreed to the management shares and outlined that equity would only grant dividends and be reclaimed upon departure from the company.
Franklin was pleased, and Hardy shared his own vision: "HD Airlines will operate 50 Douglas aircraft with standardized parts to cut costs. We'll focus on economy class only, eliminating meals and flight attendants to save on expenses."
Franklin was initially surprised by the idea of no flight attendants, but Hardy assured him it was a strategic move to lower costs.
"To attract customers, we'll offer significantly lower fares compared to competitors. For example, if other airlines charge $50 from Los Angeles to San Francisco, we'll charge $25. Additionally, we'll implement a points system to encourage repeat business."
Franklin appreciated Hardy's comprehensive approach. He raised concerns about accumulating points leading to free tickets, but Hardy explained that this would be factored into expenses, ensuring profitability.
Hardy also proposed converting employee benefits into higher wages and bonuses, arguing that tangible rewards would better motivate and retain staff.
Franklin was convinced by Hardy's thorough and pragmatic plan.
"Mr. Hardy, I'm committed to making HD Airlines a success," Franklin said.
With Franklin confirmed as the president, HD Airlines was ready to launch.
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