March 5th, 2010

Czech charter airline to challenge Malév’s renationalization

Czech charter-airline Travel Service will submit a protest to Hungary’s competition office GVH and the European Commission challenging the legality of the recent renationalization of Hungarian airline Malev, the business daily Napi Gazdasag reported on Thursday, citing Travel Service CEO Attila Farkas.

Hungarian low-cost airline Wizz Air announced on Monday that it would present an objection to the European Commission with regard to Malev’s renationalization on the grounds that it constitutes an illegal state subsidy.

Mr Farkas told Napi Gazdasag that Malev could not profitably operate the airline’s flights to Larnaca, Cyprus, and Palma, Majorca (Spain) at their current ticket prices.

Mr Farkas claimed that Travel Service and Wizz Air would, together, be capable of operating all of Malev’s economically viable flights.

Hungary’s finance minister agreed last Friday to acquire a 95pc stake in Malev for a total consideration of HUF 25.2bn (EUR 94.59m).

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  1. Forintman says:

    Ok, I have no problem now with the Hungarian state bailing out Malev. While it is a huge waste of taxpayer money, the alternative that Wizz Air would become the defacto Hungarian airline is just too much. If that happened Wizz Air surely would charge to even take a wizz on their flights.

  2. Watchdog says:

    Why don’t either Wizzair or Malev fly to Lake Balaton..after all this is a major tourist area.
    It is not just a matter of scheduling flights but
    a golden opportunity to bring much-needed customers to a beautiful area of Hungary.
    This idea is of course too sensible to be adopted.
    Let’s fight among ourselves and spend the tax payers wonga instead and fuck everything up as per usual.