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Hungary Looking for New Malev Suitor After Hainan, Hirlap Says

Malev Zrt., the unprofitable state- owned Hungarian airline, is looking for a new suitor after Hainan Airlines (600221) reportedly is no longer interested in buying the company, Magyar Hirlap said, citing “unofficial information.”

Hungary is pressed for time as next year’s budget doesn’t provide for any subsidies to Malev, the newspaper said. An ongoing European Union probe may force the airline to pay back as much as 100 billion forint ($442 million), something that would mean the end of the company, Hirlap said.

Development Minister Tamas Fellegi will speak about Malev today and may blame previous governments for the carrier’s woes, Magyar Hirlap said.

To contact the reporter on this story: Zoltan Simon in Budapest at zsimon@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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