Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Hungary Seeks European Airline Investor as Hainan Pulls Out

Dec. 5 (Bloomberg) -- Hungary is talking with potential European investors about Malev Zrt., the unprofitable state-owned airline, after China’s Hainan Airlines withdrew from negotiations, Development Minister Tamas Fellegi said.

The Cabinet aims to create a “national” airline based in Budapest, majority-owned by a Hungarian or European Union-based investor, with less debt than Malev currently, Fellegi told reporters in Budapest today.

“The focus is not Malev but air travel,” he said. “Talks are at an advanced stage with the possible investors” and may be completed in the spring of 2012, Fellegi said.

The government won’t sell Malev until the European Union completes its investigation into state subsidies the airline received, Fellegi added. Malev may have to pay back “tens of billions” of forint because of the probe, he added.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Zoltan Simon at zsimon@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.