Though some conditions of Hungarian airline Malev’s privatisation contract have not been met, the airline will not be re-naitonalised, Hungary’s National Asset Management Company (MNV) CEO Miklos Tatrai told MTI.
Malev’s troubles are not the result of the global financial crisis, but the crisis does exacerbate the airline’s present situation, Mr Tatrai said. Though many points in the privatisation contract have not been fulfilled by Malev’s buyer, repurchasing the airline because of business reasons will not even be discussed, he added.
Airbridge, a company owned by Russian airline tycoon Boris Abramovich that bought Malev in 2007, failed to repay a European Investment Bank loan by December 31, 2007 deadline, and it did not pay fees for use of the airline’s name or leases of its aircraft in a timely manner, Mr Tatrai said. Airbridge still owes MNV at least HUF 600m, he added.
MNV’s position has improved since Malev’s sale, as its liabilities related to the airline have been reduced, but a solution to ensure Malev’s stable operation and liquidity position has not been found.
Only close cooperation can product results in the present situation, but it is difficult to find an investor who can provide the airline with liquidity and meet its mid-term financing needs, Mr Tatrai said.
Malev’s privatisation contract was not drawn up in anticipation that the airline’s shares would be put up for collateral for a EUR 50m loan from Russia’s Vnesekonombank, Mr Tatrai said. The bank cannot sell the shares, but MNV can not do anything if Vnesekonombank wants to sell them. The only solution is to reach an agreement and establish a close cooperation with the interested parties.
Malev has just HUF 4bn in past due debts, the airline’s ground services company has been put up for collateral for tax office APEH and its maintenance unit Aeroplex has been put up for collateral for Ferihegy Airport operator Budapest Airport, which would leave suppliers little in the case of a liquidation, Mr Tatrai said. A liquidation would be dangerous for the airline, as would steps by suppliers to stop, limit or place conditions on the services they provide Malev, he added.
Malev was able to keep its passenger numbers stable in the months before December, but growth in December is unlikely because of a strike at Ferihegy that caused the cancellation of more than 80 flights, Mr Tatrai said.