"Hungary will start the privatisation of state-owned coach company Volán, incoming Minister of Economic Affairs Csaba Kákosy has announced.The probable successor of János Kóka said at an Economic Committee hearing in Parliament on Wednesday that he would insist on carrying on with the reform of debt-ridden railway company MÁV, adding that the continuation of the Nabucco pipeline project was also important.
Kákosy said Hungary's competitiveness has deteriorated but the worst is over in terms of growth and GDP growth will pick up to around 3% in 2008.
In its updated Convergence Programme, made public on Wednesday, the government cut its prognosis on 2007 annual GDP growth to 1.7% from 2.2%. The projection for next year is 2.8%, which matches the forecast already approved in the 2008 draft budget. The cabinet expects economic growth at 4.0% in 2009, 4.1% in 2010 and 4.2% in 2011.
Volán companies received a rival only a few days ago in the form of Orangeways that entered the international coach market on 26 November, competing with Volán to destinations Cluj, Krakow, Mukaceve, Prague and Vienna.
Orangeways has started off its services with eight BOVA Magic buses and plans to add 12 more to its fleet next spring.
Orangeways set out to compete with no-frills airlines, especially for destinations within 600 kilometres. For example, the coach company offers a one-way trip to Prague for HUF 3,700 (EUR 14).
Orangeways was set up by KFK Investment Holding, owned by entrepreneur Ferenc Kedves."
Source: Portfolio Online Financial Journal
30.11.2007