(Yicai) March 4 -- Wang Zhenghua enjoys a wide-ranging and future-focused role in Spring Airlines, which he founded two decades ago, he told Yicai after the Chinese carrier said last week that Wang will make over the bulk of his stake in one of the world's largest budget airlines to his eldest son.

“I'm doing various things now” in Spring Airlines, Wang, 79, said in an interview over the weekend. He has set up teams to study the metaverse, blockchain, and scenic spot management. “My son is doing quite well,” he said of Wang Yu, who has been the chairman of Spring Airlines since his father stepped down from the post seven years ago.

The Shanghai-based airline that he set up in 2004 announced on Feb. 27 that Wang Yu would receive a 31.4 percent stake in Chunqiu International Travel Agency Group, which controls Spring Airlines. Following the transfer, Wang Yu will own about 53 percent of Chunqiu, Wang Zhenghua 1 percent, and Wang Wei, his second son, nearly 11 percent.

Wang Zhenghua (middle) with sons Wang Yu (first from right) and Wang Wei (third from left).

Wang Yu, the biggest shareholder of Chunqiu, is also a director of the company, while Wang Zhenghua remains the chairman of Chunqiu, which he set up in the 1980s. Wang Wei is president of Chunqiu, in charge of its tourism business, and is also a director at Spring Airlines.

“As the head of the group, I still think about the future,” Wang said. “I always say that as a leader, don't focus on today. The main focus should be on tomorrow, especially in terms of strategy.

“Allocate 70 percent of your energy to think about tomorrow; 10 percent to think about the future; and 20 percent to handle today's affairs,” he said.

Wang Zhenghua after finishing a meeting.

Helmed by Wang Yu, Spring Airlines is expected to have made a profit of CNY2.1 billion to CNY2.4 billion (USD291.7 million to USD333.4 million) last year, up from CNY1.8 billion in 2019, before the Covid-19 pandemic struck the airline industry.

The Chinese market has recovered to pre-pandemic levels, and the airline also further improved cost control, Wang Yu told Yicai.

The eldest son follows his father in leading a humble lifestyle. For example, he still drives a non-luxurious car and was reported to have flown to London to attend an international aviation forum in economy class. He even sometimes takes the subway with colleagues. 

Wang Yu has also kept the same office since 2008, a space he shares with President Wang Zhijie and his younger brother Wang Wei.

Between them, Wang Zhenghua and Wang Yu are worth CNY23 billion (USD3.2 billion), according to last year's Hurun Global Rich List.

The door of Wang Yu's office

Before the pandemic, Spring Airlines spent 62 percent less on core business costs than the industry average. More specifically, management costs were 50 percent lower than average, financial costs 60 percent less than normal, and marketing spend 78 percent lower than the norm. This is why the carrier can offer airfares that are 30 percent cheaper than those of its rivals.

The inside of Wang Yu's office

“An increasing number of airlines are copying us now, trying to hike their efficiency by going smart and doubling down on informatization,” Wang Yu said.

Wang Yu explained that he shares the same concepts as his father but their management styles differ as the son prefers to make decisions based on numbers, whereas his father trusts his gut feeling.

Wang Yu, who worked for several consultancies such as Roland Berger, BearingPoint, and Aon Hewitt before joining Spring Airlines, tends to make data-based decisions, such as formulating key performance indicators to improve predictability and the use of its planes.

Moreover, Wang Yu believes that Spring Airlines can develop a little faster than the industry average, whereas his father is more cautious.

Wang Yu said that his opinion is mainly based on the airline’s positioning. Its customers usually travel to see family or friends, so achieving double-digit growth in solo travel should not be difficult, he said. Many people in central or western China have never taken a plane, so their travel needs are very big, he added. 

Editors: Zhang Yushuo, Emmi Laine