Signs of improvement at Malév after privatization

Malév Hungarian Airlines, one of the oldest national carriers in

East/Central Europe, was privatized this past spring and was bought by the private company AirBridge Zrt., a Russian-dominated consortium. The airline has generated losses each year, faced stiff competition from no-frills carriers in the region and has been weighed down by a huge debt. Yet numbers released earlier today show that the carrier is heading in the right financial direction and there may well be light at the end of the tunnel.

According to the most recent statistics, over three million passengers traveled on Malév’s regularly scheduled flights thus far this year. This statistic does not include in it the Christmas peak season, which will likely boost traffic figures further. Additionally, Malév increased its market dominance in Hungary; just under 49% of all flights to and from

Budapest were operated by the Hungarian national carrier.

Malév also seems to have become much more popular among businesspeople, as the number of passengers travelling in business class increased by 18%, compared to figures from 2006. Over-all passenger traffic saw a 16% rise this past November. Much of this increase is a result of Malév’s accession to oneworld, one of the largest international airline alliances.

As an added piece of good news, the Hungarian State News Agency reported earlier today that the European Commission is not planning on launching an investigation into the carrier’s privatization and its majority Russian ownership. Last week, several newspapers reported that the EC was considering whether or not Malév’s privatization contravened EU law, which states that for an airline to enjoy privileges within the European Union, the majority of the shares must be in the hands of Europeans.

www.malev.hu