Malev searches for partner carrier

Malev searches for partner carrier

HUNGARY’S national airline Malev has stepped up its search for a partner carrier now the country’s government has sanctioned up to 49% for sale to a foreign investor.

But there will be no strategic alliance struck with British Airways following the Malev board’s rejection of terms that would have linked the two airlines. Malev is currently 64% state-owned, while 36% is in the hands of financial institutions after completion of the buyout of Alitalia’s stake in September last year.

Malev chief executive officer Ferenc Kovacs said: “We’re analysing all alliances, looking at the benefits and any disadvantages of each. As yet, we have not reached a decision.”

However, he maintained an alliance was critical to Malev’s development.

“It’s absolutely vital. Budapest is well located geographically and to fulfil its potential as a hub we need to be part of an alliance,” he added.

Malev’s potential for foreign investors is shown in its scheduled passenger carryings. Traffic was up 12% to top two million in 1998/99 after growth of 6% and 10% in the previous two years. The carrier has taken delivery of a third Boeing 767 to service its long-haul routes – currently Beijing, New York and Toronto.

Three B737-400s have also been leased to replace older B737-200 aircraft, adding capacity and flexibility to short-haul operations.

Malev will be mostly mixing B737 aircraft on its twice-daily flights from Heathrow and also on its four weekly services from Gatwick to Budapest this winter.

Budapest: well located for a strategic alliance