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Demján to participate in launching “new Malév”

Hungarian businessman Sándor Demján is in talks on taking part along with foreign investor partners in launching a “new Malév”, the business weekly Figyelő says.

Imre Mécs, CEO of Sándor Demján’s Magyar Tőletársaság, confirmed to the paper that “there are plans that include our possible involvement”.

Representatives of the industry magnate are in talks on possibly taking over the Hungarian national carrier along with foreign partners after “cleaning it up” technically and after its debts have been settled by the government according to the weekly.

Under the plans, Malév's maintenance and ground-service subsidiaries would be transferred to the national asset management company MNV as these are well-functioning assets. The Malév brand and one aircraft are still owned by one MNV-subsidiary set up for the purpose, which has not been privatized, therefore it could be a legally appropriate place for the above mentioned two companies. The remainder of Malév would then be liquidated, which would also mean consolidation, since the company's debts are backed by government guarantee, which the banks could draw down in such a procedure.

A new Malév could then start with a clean slate and a much smaller network, according to industry rumors. The new company would not have to bother with partnership agreements signed in the past that are often disadvantageous, but impossible to cancel, and the brand name could be leased from the MNV subsidiary just as it is done by the current Malév, the paper says. (MTI – Econews)