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Malev in financial trouble
Irish Times reports that Malev is in danger of imminent collapse.
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That article quotes 22 a/c and 2,600 staff which = 118 per machine.
As I have said before, much more consolidation to come. Not nice for anyone but if the Euro rules about no state support are to be applied equally - then more carriers have to close and merge. |
Looking at their fleet and route network, what need is there for Malev in this marketplace?
The days when countries were expected to have flagship carriers are long gone, and BUD offers little as a transit point that, say, PRG or WAW can't. Sky Europe even once called themselves Slovakia's national airline, would another oneworld player step in to keep the routes going, or are they strategically more useful to the Lufthansa crowd than bmi were? Ryanair have obviously smelt blood too with recent route launches, presumably Wizzair 'waiting in the wings' (excuse pun) to expand their BUD operation too? |
It is sad to see, whatever about the marketplace; MA has been in operation for around 50 years and has served Hungary right through the communist years and was one of the first Eastern Bloc airlines to operate western equipment (737-200).
The Hungarian govt has taken steps to offer some protection to the airline, protecting it from creditors (Hungarian equivalent of Ch 11?) and a new plan for the carrier is being drawn up. How legal this is under EU law remains to be seen. I do hope MA can survive. JetPhotos.Net Photo » HA-LOA (CN: 28254) Malév Hungarian Airlines Boeing 737-7Q8 by John Fitzpatrick |
Malev belongs to the government having been renationalised. However the EU says they have to pay back $400 million of illegal state subsidies. So how the government can prop them up further is as yet unclear.
It is suggested they are operating under some form of chapter 11 equivalent. However presumably airports and fuel companies are going to insist on cash up front, which is going to make further operation at best complicated. |
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The Hungarian ministry of national development responded by saying it would do its best “to sustain the airline’s uninterrupted operation”, adding that discussions with a “strategic investor” were in progress. Strategic investor? Who on Earth would decide to put big money into this overstaffed and chronically failing airline? Unless... In fact, I can see some similarities between Viktor Orban conservative-nationalist government and Italian's Berlusconi. He also "mysteriously" saved Alitalia pouring "private" money into financially unsuccessful state enterprise. Is Orban looking for a similar solution in Hungary? |
See my original post on this.
http://www.pprune.org/airlines-airpo...e-support.html Its about time the idiots in BRU levelled the playing field. |
A result similar to Alitalia would seem at least one of the options. It is probable that Orban will not want to see his national airline totally disappear. If the old airline and half the jobs vanish he can blame it on Bruxelles and the new slimmed down Malev 2 can carry on where they left off.
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"Its about time the idiots in BRU levelled the playing field."
It's about time "the idiots in Brussels" stopped interfering in everything. Regretfully it's sovereign governments that allow it. It's a convenient excuse: "Brussels won't let me do it" or, other contexts, "Nick Clegg won't let me do it". MA isn't the only carrier in trouble in that neck of the woods, LO and OK are also in difficulties. Maybe an SAS-type arrangement could help: "Central European Airways"? Unfortunately each airline is in a different alliance. Another one for IAG? |
Another one for IAG? |
jabird
The days when countries were expected to have flagship carriers are long gone |
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That's over now. Isn't it?
2012. február 3-án 06:00 órakor leállt a Malév Google translation: The Board decided that in order to minimize the damage order the Hungarian national airline to cease operation. Accordingly, on February 3 6:00 pm, almost 66 years of continuous operation after Malév aircraft are not taken up. "Unfortunately, the patterns, making the best we held, and which have worked hard to avoid. Although in recent days there was still hope to resume operations, and passenger confidence was undiminished, but in recent days appeared to cause the information service provider partners have lost their trust, and from one day to another, began to ask for advance payment of the services they provide. This speeded up the cash outflow to the extent that the airline has now become untenable situation. It is also known that the owner, despite the best intentions, the EU condemned the decision, after unable to provide additional financial resources to operate. Against this background, the Board decided to order the Hungarian national airline-like operations to cease operation. All utasunktól apologize. " |
And in proper English:
Hungarian national airline Malév announced Friday morning that it was ceasing operation, after having failed to come up with a solution to the company's ongoing financial troubles. Passengers at Budapest airport were informed this morning at 7:00 a.m. that all outbound flights were cancelled. In a statement published on malev.com the company said that ticket holders would be informed by customer services about alternate travel arrangements and compensation. Individuals impacted by the shutdown can call the following phone numbers: 06-40-21-21-21 from within Hungary, and +36-802-11-11 from outside the country. On Tuesday the government issued a decree providing assistance to any passengers who purchased tickets for flights scheduled no more than three days after a shutdown in operations, as well as those who have traveled abroad with the airline and who are scheduled to return before the end of February. "Unfortunately, what we feared the most and did everything to everything to avoid has come to pass," the company said in a statement. "Although there was still hope until the past few days that the operation could continue and passenger still fully trusted us, news reports in the recent few days has caused our service partners to lose trust and overnight began to demand advance payments for their services. This has accelerated our cash outflow to such an extent that the airlines condition has become untenable. It is also known that the owner, despite its best efforts, cannot continue to provide financial resources for our operation after the EU's negative decision. In light of all the above, the Board has decided to end the operation of the Hungarian national airlines. We apologize to all our passengers." The firm's leaders will hold a press conference at 8:00 a.m. to offer further information. |
It'll probably be another Swissair, Sabena type scenario with a replacement Hungarian national airline starting up PDQ.
A shame though, some years ago I travelled STN-BUD-ODS-BUD-STN with MALEV and it was a very pleasant experience, good service, nice aircraft etc. |
Indeed, have traveled Malev ones. Couldn't fault them. Such a shame to see another airline of this size go under in such a short period of time.
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I have a ticket booked ex LGW for sometime in may with Malev to BUD. Ah well. :ugh:Looks as if Easy and Ryanair are the only "safe" carriers these days. What a shame. I remeber fondly as a young chap in '85 on the terrance at Budapest airport. Think I have some nice shots back then on IL18's and TU 134's and 154's proudly in Malev colour schemes.
Nivsy |
Malev aircraft positioning out of Budapest
For any spotters out there or anyone generally interested the majority of the B737 fleet is expected over the north of England shortly
(Info from a spotters forum) **Now delayed as apparently the Malev pilots are refusing to fly them** expected over OTBED between 1600 & 1645 (eta Shannon 1705 - 1750) to route over Manchester and via PENIL in flight plan order - but not guaranteed to pass over in this order or during the filed times - non airborne as yet) HA-LOK B738 MAH5200 HA-LOM B738 MAH5248 HA-LOH B738 MAH5224 HA-LOU B738 MAH5212 HA-LOC B738 MAH5236 HA-LOL B737 MAH5250 HA-LOS B737 MAH5300 HA-LOR B737 MAH5336 HA-LOE B736 MAH5348 HA-LOD B736 MAH5324 HA-LOF B736 MAH5350 HA-LOG B736 MAH5376 HA-LOJ B736 MAH5400 HA-LON B736 MAH5412 |
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