Malev takes five planes out of service and introduces cutbacks

In what is being euphemistically referred to as a process of “rationalization,” the management of Malev Hungarian Airlines has decided to remove five of the largest Boeing 737 airplanes from its fleet, as the carrier continues to struggle to turn a profit. The privately owned Hungarian flag carrier released a candid statement in which it conceded that “further cost-cutting measures” and “group lay-offs” were inevitable. The removal of five B-737 planes comes on the heals of the airline’s decision to stop flying the Boeing 767, which Malev had used on its long-haul flights to the United States and Canada. The routes to New York and Toronto, however, are being suspended this autumn and as such, there will no longer be any need for wide-bodied planes. Malev will instead focus primarily on short-haul European destinations, as well as a small handful of cities in northern Africa and the Middle East. The Hungarian airline, however, was quick to point out that the removal of five B-737 planes was merely a temporary measure.

The major lay-offs that Malev announced, however, will permanently re-shape the Hungarian national airline. The carrier has decided to lay-off 21.6 percent of the airline’s staff, which translates into around 250 employees who will soon find themselves out of work. Many of those to be let go are pilots and flight attendants and the current redundancies follow the dismissal of 6 percent of the company’s staff last year.

Malev Hungarian Airlines was privatized in 2007 and is owned by Air Bridge Zrt, a company registered in Hungary, but dominated by Russian interests. Despite the cutbacks, Malev remains a full-service carrier, offering economy class passengers on European routes complimentary light meals, consisting of sandwiches, as well as free hot and cold drinks.

www.malev.com