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Volánbusz joins BKV in terminating Ikarus Egyedi contract

State-owned long-distance bus operator Volánbusz said Wednesday it has decided to withdraw from a contract with troubled bus producer Ikarus Egyedi for the purchase of 180 articulated buses after the latter failed to deliver the buses even 90 days after the April 11 delivery deadline.   

Referring to Ikarus Egyediʼs failure to observe the contractʼs stipulations, Volánbusz said it has informed the supplier of its decision and is seeking compensation.

The move comes after Budapest public transport company BKV Zrt. also announced on Wednesday its withdrawal from a contract with Ikarus Egyedi for the purchase of 30 Modulo buses after only ten buses were delivered by the April 11 deadline.

BKV recalled in a statement that in January 2017 Ikarus Egyedi had signed a contract with Volánbusz for the delivery of 180 Modulo M168d articulated buses. In December, Volánbusz, BKV and Ikarus Egyedi signed a contract for the transfer of 30 vehicles to BKV. 

Referring to Ikarus Egyediʼs failure to observe the contractʼs stipulations, BKV said it is likewise seeking damages and is reviewing its other contracts related to Ikarus Egyedi.

Ikarus Egyedi filed for bankruptcy protection on Monday, asking the government to declare it a strategically important company and to participate in the restructuring. On Tuesday, the Ministry for Innovation and Technology met Ikarus Egyediʼs request.

The ministry noted that the government sees the development of domestic bus production as of major national economic interest. It stressed, however, that this policy is based on the activities of market players and not state-owned actors.