Malev secures multimillion euro credit

The private sector owners of Malev Hungarian Airlines have been approved for a major credit line worth €30 million, in order to help stabilize the company’s financial situation. When AirBridge Zrt, a company registered in Hungary but with Russian interests, purchases the country’s flag carrier, part of the agreement spelled out that Malev’s new owners would be required to assume and pay down the company’s massive debt, as well as invest a staggering €50million into the company. AirBridge Zrt intends to do fulfill both of these requirements in the near future, and it will use its new €30 million credit line to meet the goals.

One of Malev’s short term plans is to purchase several Q-400 turboprop planes from Canadian aerospace giant, Bombardier. These planes are widely seen as being among the most fuel efficient available in the industry. These will ultimately be used on regional flights, with more modest passenger traffic figures. At the same time, the carrier will stop flying Boeing 767 planes, as it scraps all of its long-haul flights later this autumn.

Malev remains a full service national airline, and despite recent austerity measures, passengers are still offered a free light meal (usually consisting of a sandwich and a chocolate wafer) on all European flight, as well as a choice of hot and cold beverages, including alcoholic drinks.

Thank you to the Budapest Times for the initial report.

www.malev.com