Malév Hungarian Airlines
Malév, one of the leading airlines of Central-East Europe, has built up enormous experience connecting the cities of West and East Europe.
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Hungary APV says no to 3bln forint Malev subsidy |
Hungarian privatisation agency APV has advised the government not to give the 3 billion forint ($16.34 million) cash injection to loss-making national airline Malev as the company was doing better than expected.
"In the year 2004, marking a turning point in Malev's life, despite very hard market conditions, it gave the right responses to the challenges of rising fuel prices and the attack by budget airlines," APV said in a statement on Friday.
APV said it would save taxpayers' money if the government did not give the 3 billion forint subsidy to Malev, and it suggested instead to reassess some undervalued assets and increase efficiency at the airline.
Malev raised revenues and defended its market share in 2004, finances were stable and needed no outside help, APV added.
APV said however it could not forecast Malev would break even in 2004 because of adverse market conditions.
Earlier this month, Hungary made the terms of Malev's privatisation easier after cancelling the tender on 18 November, because there had been only one bid, which failed to meet basic requirements.
Malev was given 7 billion forints by Hungary's government earlier this year and another 3 billion forints was expected by the end of the year, with the company saying the sum would allow it to break even.
Source: Reuters
20.12.2004
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