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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 |
Where are all those Malev aircraft going?
Are they the property of a certain leasing company? Meanwhile Ryanair, Wizzair and many national carriers swooping in today to lap up Malev's routes. There'll be no new national carrier arising from the Malev ashes. |
To Shannon returning to Leasing company ILFC
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Three of them are now in the air over Germany and the Netherlands
HA-LOK is leading the pack followed by HA-LOU and HA-LOH (all B738s). |
I know the days of Flag Carriers are diminishing but still, its sad to see such a venerable airline fall from grace.
Strangely, back in Communist days Malev was one of the better run Eastern Bloc carriers prefering to focus on an all Tupolev fleet and Medium Haul routes to support tourism rather then have prestige long range and thirsty IL-62s. Sadly, the writing has been on the wall for several years. The privitisation was extremely drawn out and then Malev was sold to the now defunct Russian group AirBridge. Their only action was to order more Russian aircraft....Sukhoi 100s. Renationialisation followed once AirBridge had their own troubles at home. You would wonder how Malev would have fared had one of the other Consortiums triumphed in the bidding. Maybe enough reforms would have been made , as there were several experienced aviation industry from Western Europe (including an ex EI excutive). Then again, one of the under bidders was FlyLAL! I can see the merits of the position regarding State aid. However, when Europe permits AF-KLM merger you can't help but think that their isn't a level playing field. Good luck to all the staff. |
6 more heading for snn at the moment HA-LOD, HA-LON, HA-LOJ,HA-LOF all 737-600 currently over Prague and HA-LOC 737-800 HA-LOR 737-700 just departed Budapest. 14 in total heading for Snn tonight all ILFC aircraft.
ILFC and SNN in for a busy night. |
Recruitment Day in Budapest! Ryanair will be holding a recruitment day in Budapest on Tuesday next (7th Feb), inviting job applications to help Ryanair gear up for its 4 aircraft, 2m passenger p.a. base at Budapest Airport. The recruitment day will be held in Airport Hotel Budapest. Address: 2200 Vecses, Lorinci u. 130/A. Presentation for Engineers will start at 10:00. Presentation for Pilots will start at 14:00. Details of a recruitment day for Cabin crew will follow. All applicants must be fluent in English and have the unrestricted right to work in the EU. Please bring you full CV in English with you on the day. |
OK, I'm not surprised, but this is still a shame.
Don't national carriers usually die a much slower death than this? I'm trying to remember back to the Swissair > Swiss changeover, how long did that take? |
Ryanair have announced 31 new routes from Budapest starting in 2 weeks time.
I guess that kind of scuppers any hope of a Malev 2 happening a la Swiss/ Swissair - Sabena / SN Brussels scenario. Very sad to see this once great carrier disappear forever. Good luck all. |
I note they've added MAN, which MA didn't serve (v LS) - but nothing new added for London. Surely that market warrants more than the alreeady announced route to STN? MA used LGW, not MOL's favourite airport, but far from his least favourite (LHR) either.
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Currently at my parents house which is under the approach path into Shannon. In the past 30 minutes there was a queue of 6 aeroplanes which appeared to have multi-coloured tails (tail logo lights were on but it's still diffucult to make out for sure)... Normally it's dead quiet this time of night.
Those Malev 737's must have arrived. |
Sabena ceased operations during November 2001, SN Airlines did not commence until 2002. Likewise, Swissair became grounded during October 2001 yet Swiss International didn't commence until April 2002.
Of course, during the interims, the other operators would have been in there trying to pick up business and routes but, as with MALEV, there is a market for national and full service airlines, surely nobody is suggesting that all the nationals of Hungary will be satisfied to fly with the likes of Ryanair and Wizzair or indeed any foreign national carriers ... they'd like their own national carrier please. This has all happened so quickly nobody has had time to catch their breath yet ... but when they do! |
Of course, during the interims, the other operators would have been in there trying to pick up business and routes but, as with MALEV, there is a market for national and full service airline Is the market big enough to sustain a national carrier, or even a base operation from an existing full service provider, and for them to do so at a profit? Much less likely. It goes down to the old saying - yes, there's a new gap in the market, but is there a market in the gap? Switzerland is a completely different county compared to Hungary - far wealthier, and good demand for premium yields from three key cities - finance, biotech and much more in ZRH + hinterland, chemicals in Basel, ngos in GVA and the rest. Belgium has the eurocrats. I'm sure the vultures will do very well out of the Malev demise, but I'm not sure they will leave many scraps for a network carrier to feed on. |
jabird,
Never mind the Boeing/Airbus sized operation, Malev also previously operated F70's and more recently Q400's and CRJ Pocket Rockets .... the likes of Ryanair and/or Wizzair are only in business to shift in bulk and from point to point. Such airlines in mid Europe are ideally placed to connect east and west Europe, the time I flew with MALEV it was because I was travelling to/from Odessa where few international carriers operate to/from. Austrian Airlines make a killing connecting east and west operating their 'Tyrolean' Pocket Rockets and/or Puddle Jumpers to/from these regional airports in eastern Europe and just check out the fares Austrian charge to/from such airports as DNK and/or HRK ... and I can tell you that they get good load factors on such routes also. It's not all about Airbus's nor Boeing's nor is it all about being cheap and cheerful. http://www.airlineroutemaps.com/Euro...ian_europe.gif |
Never mind the Boeing/Airbus sized operation, Malev also previously operated F70's and more recently Q400's and CRJ Pocket Rockets .... the likes of Ryanair and/or Wizzair are only in business to shift in bulk and from point to point. How many hubs are there just using those aircraft - AND providing meaningful connections? Perhaps the old Sabena were somewhere up that street - I recall going through BRU once and there must have been getting on for 10 146/Avros queing up for take off. They also offered very fast connection, and even put us cattle up towards the front if we needed a speedy one. BUT - that operation was horribly expensive. Does even the re-re-re-launched Brussels airlines make money? I was in Berlin, in the queue for the Reichstag and desperate to see the new dome before I headed back home. I remember calling them and asking what time check-in would close for their flight from THF. 'Oh Mr J, about 20 minutes before departure - try and be there by then if you can, give or take 5 minutes'. Flybe have the kind of fleet you mention, and they've recently really started pushing the connections they send via CDG + a few of their own routings. Obviously, they've done the Finnish deal. Something for them perhaps? |
jabird,
It's like many a main hub airport, there are few routes that can be, profitably, served by the larger aircraft unless the thru connections are offered and many of these feeder routes will only be profitable if served by the smaller aircraft types. You mention FlyBE but, so often, LoCo's only operate at inconvenient (wrong) times of day for both business and leisure travellers alike ..... by example if, as I did, one is travelling LON/BUD/ODS one would like to depart LON at a reasonable time of morning to arrive in ODS at a reasonable time of afternoon/evening and vice versa. MALEV had a few sizes of B737, they obviously needed them to, well atleast make the effort, operate route(s) cost effectively, Ryanair and Wizzair both, each, operate just the one type of aircraft(s) restricting their route viability. |
You mention FlyBE but, so often, LoCo's only operate at inconvenient (wrong) times of day for both business and leisure travellers alike by example if, as I did, one is travelling LON/BUD/ODS one would like to depart LON at a reasonable time of morning to arrive in ODS at a reasonable time of afternoon/evening and vice versa. Unfortunately, these are still niche markets - otherwise there's be routes there from the usual connections hubs that also have good, often multiple daily feeds from the regionals - esp AMS, CDG & FRA. In the meantime, TK do IST-ODS, fed from BHX, MAN & various LON, but I haven't checked timings. MALEV had a few sizes of B737, they obviously needed them to, well atleast make the effort, operate route(s) cost effectively, Ryanair and Wizzair both, each, operate just the one type of aircraft(s) restricting their route viability. I haven't done a route count of where MA went compared to the 31 routes FR have launched - is that map recent? DUB & ORK? Also, if their LON airport was LGW, I'm sure BA can take the extra slack at LHR, but wouldn't MOL want to take on Easy @ LGW? |
Malev at Shannon
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Any news on where the Dash 8s are going - or are they staying in BUD for the time being?
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The B737 is still in DUB since Thursday night. A Dash 8 was due in DUB at 21.25 yesterday but it didn't position in.
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Shannon benefits from airline closure - The Irish Times - Sat, Feb 04, 2012
It is understood Malev has reached agreement with the lessor that the aircraft will remain in Shannon for a time in the event the airline can resume operations. |
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