"Malev Hungarian Airlines expects losses to decrease to a negligible level next year, with plans to launch flights to new Eastern Europe in 2009 hoped to generate a high growth rate for the company, newly appointed CEO Péter Leonov told daily Magyar Nemzet.To complement a sophisticated network of flights to Western Europe that Malev considers its mainstay at present, the airline is planning to develop services to destinations in Eastern Europe, Leonov told the newspaper. However, plans to capitalize on new opportunities in the emerging markets of Eastern Europe such as Russia, Ukraine, the Baltic states, Romania and Bulgaria does not mean the company will neglect Western markets.
Responding to market speculation that Malev is seeking to replace its existing fleet to Russian aircraft, Leonov said the core of the fleet consists of new generation Boeing 737 airplanes, which the company has no intention to dispose of. On the other hand, the replacement of old CRJ's and Fokkers is currently on the agenda and one potential model to replace these is the SSJ Suhoi, a decision Malev will make in 2008.
According to Leonov, the major layoffs announced earlier this year are in progress, affecting less than 9% of Malev employees. Layoffs will not continue in 2008.
The company is expecting 2007 cost saving to total HUF 1.3 billion without layoffs, with a HUF 900 million increase in revenues. 2008 losses will be on a minor scale, with new flights in 2009 expected to help the company become profitable and launch new projects."
Source: Portfolio Online Financial Journal
27.12.2007