Tech Giants: Starting from Bankrupt Companies

357: Chapter 357 Airbus - Large Materials OrderIn June, the sunlight in Toulouse was somewhat dazzling.

This city in southern France is the cradle of the European aviation industry. From the city center to the suburbs, Airbus logos can be seen everywhere. The Garonne River flows quietly, and the Airbus headquarters building by the river looks like a giant silver spaceship, quietly moored there.

In the meeting room on the top floor of the building, the atmosphere was even more scorching than the sunlight outside the window.

On one side of the long oval table sat the decision-makers of Airbus: CEO Guillaume Faury, Chief Engineer Jean-Pierre, the Procurement Director, and the Legal Counsel. Five people, representing fifty years of accumulation and pride in the European aviation industry.

On the other side sat only three people: Wu Yi, the President of Spark Materials, the Technical Director, and a translator.

Fifty-five-year-old Faury wore a meticulous deep blue suit, his hair combed neatly. He had worked at Airbus for thirty years, rising from engineer to CEO, and had experienced countless technical selections and supplier negotiations.

But today, he was facing an unprecedented situation.

”Mr. Wu, we have tested Xinghuo’s Ceramic Matrix Composites and Third-Generation High-Strength Steel.”

He paused, looking directly at Wu Yi:

”The results are very frustrating for our engineers.”

Wu Yi didn’t speak, only nodding slightly.

Faury gestured, and Chief Engineer Jean-Pierre turned on the projector.

Sixty-five-year-old Jean-Pierre is Airbus’s technical authority, with white hair and gold-rimmed glasses. His finger slid across the tablet, and data popped up on the large screen:

Ceramic Matrix Composites Comparison

Parameter | Xinghuo CMC | Western Mainstream | Advantage

Temperature Resistance | 1700°C | 1400°C | +300°C

Density | 2.5g/cm³ | 3.2g/cm³ | -22%

Lifespan | 5000 hours | 3500 hours | +43%

Cost | €800/kg | €1200/kg | -33%

Third-Generation High-Strength Steel Comparison

Parameter | Xinghuo Steel | Western Mainstream | Advantage

Strength | 2200MPa | 1800MPa | +22%

Weight Reduction | 25% | 15% | Leading

Cost | €50/kg | €80/kg | -37.5%

Faury looked at Wu Yi with a complex expression: ”Mr. Wu, if these data are real, Airbus has no reason not to choose Spark Materials.”

Wu Yi finally spoke, his voice as calm as if chatting about the weather: ”Mr. Faury, these data are not only real. Moreover, Xinghuo’s production capacity can meet Airbus’s needs for the next ten years.”

Faury left the meeting room to attend a board meeting. Wu Yi was taken to a quiet reception room, where the entire Toulouse skyline could be seen through the floor-to-ceiling windows. The Garonne River shimmered in the sunlight, and on the opposite bank, planes were being assembled in the Airbus factory.

Two hours. Wu Yi drank three cups of coffee and looked out the window twice. In the meeting room, a heated debate was underway.

One director stood up, worry in his voice: ”If we use Spark Materials, how will Boeing react? How will the US government react?”

Another director sneered, a hint of disdain in his smile: ”Boeing? Boeing’s own supply chain is still using Spark Materials. They purchased two billion dollars from Xinghuo last year. The F-15EX uses Xinghuo’s high-strength steel.”

A third director frowned: ”The problem is European public opinion. Will they say we ’betrayed’ them?”

Faury stood up. His gaze swept over every director, his voice steady and powerful: ”Everyone, Airbus’s mission is to build the best aircraft. It is not to please the United States, nor is it to please public opinion.”

He paused: ”If European public opinion believes that using better materials is ’betrayal,’ then they can go fly Boeing.”

The meeting room was silent for three seconds. Then, a vote. Twelve in favor, one against, and two abstentions.

The next morning, in the signing hall of Airbus headquarters. Under the huge Airbus logo, more than three hundred reporters crowded the entire hall. Lenses and microphones were aimed at the signing table, and the red lights of the cameras flashed incessantly. Media from Europe, the United States, and Asia were all present.

Faury and Wu Yi stood side by side at the signing table. Faury spoke first, his voice transmitted to the world through simultaneous interpretation: ”Today, Airbus and Spark Materials signed a strategic procurement agreement. Over the next five years, Airbus will purchase 20 billion euros worth of Ceramic Matrix Composites and Third-Generation High-Strength Steel from Xinghuo.”

A tsunami of flashes erupted below. Faury continued: ”These materials will be used for the subsequent models of the A320neo and A350, as well as the next generation of zero-emission aircraft.”

He paused, his gaze sweeping over the audience: ”Airbus’s choice is based on a simple principle—the best materials for the best aircraft.”

Wu Yi walked to the microphone. The forty-five-year-old President of Spark Materials wore a dark gray suit; his face was lean, but his eyes were resolute. His voice wasn’t loud, but every word reached the entire venue clearly: ”Xinghuo’s materials can reduce the weight of Airbus planes by fifteen percent, lower fuel consumption by ten percent, and reduce maintenance costs by twenty percent.”

He smiled, a calm confidence in that smile: ”This means that every Airbus aircraft can earn two million dollars more per year for the airlines.”

People in the audience began to applaud. Wu Yi finally said: ”Xinghuo does not participate in politics. Xinghuo only sells products. Whoever uses Xinghuo’s technology leads the market.”

The applause grew louder. To the right of the signing table sat the commercial counselor from the US Embassy in France. He remained expressionless throughout, like a statue. After the signing ended, he stood up and left early without saying a word.

A reporter from The Wall Street Journal chased after him, the microphone almost shoved into his face: ”Mr. Counselor, what does the US think of Airbus’s choice?”

He didn’t look back and only said four words: ”No comment.”

The next morning, Paris.

In the editorial department of Le Figaro, the editor-in-chief was reviewing the front-page headline. The sixty-year-old veteran journalist wore reading glasses, his red pen moving across the draft.

The headline was: ”Airbus’s Choice: Not Betrayal, but Survival.”

Subheadline: ”Spark Materials’ Performance Crushes Europe and America; Airbus Has No Choice.”

He put down the red pen and signed ”To Print.”

On the same morning, Seattle. Boeing’s headquarters is a giant glass building located in the northern suburbs of Seattle. At this moment, in the CEO’s office, David Calhoun watched the news of the Airbus signing, his face ashen.

Sixty-year-old Calhoun had worked at Boeing for thirty years, rising from engineer to CEO. He had experienced the darkest moments of the 737 MAX crisis and the heavy blow of the pandemic, but he had never felt as powerless as he did today.

He said to his assistant: ”Call the White House. We want equal treatment.”

The assistant gave a bitter smile, which held both helplessness and mockery: ”CEO, equal treatment for what? Does the US have materials that can replace Xinghuo’s?”

Calhoun fell silent.

The assistant continued: ”We also purchased two billion from Xinghuo last year. The F-15EX uses Xinghuo’s high-strength steel.”

Calhoun murmured: ”So, what we are protesting now is that Airbus bought what we also need to buy, and we cannot be bound by sanctions ourselves.”

In the afternoon, Washington, at a White House press conference. Spokesperson Jen Psaki stood behind the podium, facing a sea of reporters. Forty-five-year-old Psaki is a veteran news figure who has seen countless difficult questions.

But today’s question, she didn’t know how to answer.

A reporter raised their hand: ”What is the White House’s comment on the Airbus-Xinghuo agreement?”

Psaki looked down and read from her notes: ”The United States expresses serious concern regarding this. We will closely monitor the impact of this matter on US-EU trade relations.”

The reporter followed up, their voice sharp: ”After ’serious concern’? Will there be sanctions against Airbus?”

Psaki was silent for two seconds.

”We are evaluating all options.”

Some reporters in the audience laughed. The laughter was light, but in the quiet press briefing room, it was particularly piercing.

In the afternoon, Wu Yi got off the plane and was immediately cornered in his office by Lin Wan.

The twenty-seven-year-old President of Xingchen International wore a dark suit skirt and held a report: ”Mr. Wu, after the Airbus signing, Boeing’s procurement calls have also come in. They are demanding ’equal pricing’.”

Wu Yi took the report, glanced at it, and smiled.

There was a veteran businessman’s cunning in that smile: ”Tell them, Boeing purchased two billion last year, and Airbus signed for twenty billion today. They want equal pricing? Sign for twenty billion first.”

Lin Wan also laughed: ”Boeing’s side is probably going to be fuming.”

Wu Yi walked to the window and looked out at the Shenzhen skyline: ”Even if they’re fuming, they have to take it. It’s a seller’s market now.”