Civil initiative in talks with investors on launching Malév replacement

Transport

Hungary's Civil Society for the Establishment of a New Hungarian Airline hopes to wind up talks with Asian, Arab and European investors and lenders by December, Péter Lévai, who heads the initiative that seeks to replace failed national carrier Malév, told hvg.hu.

László Csiky, the society's co-head, said USD 600 million-800 million of credit is expected "if the talks are very successful".

The Civil Society for the Establishment of a New Hungarian Airline envisions a conventional airline, but one that takes into account the experience of its low-fare peers and outsources all maintenance and other services, Lévai said.

The airline could be established as soon as the second half of September, after which it would form joint ventures or subsidiaries in which it is a minority partner with peers in destination markets, he added.

He said such partnerships were already being established in the United States and Africa. Csiky said the new airline would target markets in Asia and Africa, ones that still do not have a firm presence in Europe.

The carrier could launch scheduled flights by March already, he added. The airline, dubbed Hungarian World Airways, is expected to carry 10 million passengers in its first year, generating USD 9 billion, hvg.hu said. It targets profit of USD 260 million by its third year, the website of business weekly HVG added.

ADVERTISEMENT

EU-funded fact-checking website in Hungary launches Analysis

EU-funded fact-checking website in Hungary launches

General elections to be held on April 3 Elections

General elections to be held on April 3

Microsoft Hungary head Chris Mattheisen discusses the Vatica... Podcasts

Microsoft Hungary head Chris Mattheisen discusses the Vatica...

Most districts not planning mandatory vaccination at kinderg... City

Most districts not planning mandatory vaccination at kinderg...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.