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Hungary gov't to provide more funds to Malév

The Hungarian National Asset Management Company (MNV) will make a government-authorized proposal at Hungarian airline Malév's Friday shareholders' meeting to provide a capital injection to the national carrier, business daily Világgazdaság said on Friday, quoting Minister of National Development Tamás Fellegi.

In an interview with the paper, the minister said the government will have to provide further funds to Malév in order to secure continuous financing of the company's operation.

Fellegi said Malév's debt and debt service and the recent drastic rise in kerosene prices and lower traffic due to the downgrade of Budapest Ferihegy International Airport to the “unclear” security category earlier this year make the additional funding necessary.

Answering a question regarding Malév's possible sale, Fellegi said he would not “rule out any possibility”. The government's strategic goal is to strengthen the state's role in the economy, including retaining and strengthening state property, which applies to Malév as well, he said. (MTI-Econews)