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Gov’t converts HungaroControl into company, raises capital

Air traffic controller HungaroControl has been converted from a budget-funded institution into a limited share company and transferred to the State Privatization and Holding Zrt (ÁPV), MTI reported.

The Ministry of Economy and Transport will exercise ownership rights over HungaroControl Zrt, the official record of government decisions shows. The government decided at the same time to raise the company's registered capital by Ft 5.35 billion by January 31, 2007, using cash left over from its operation as a budget-funded institution. In addition to the cash injection, assets valued at Ft 14.34 billion will be transferred to HungaroControl. HungaroControl will also receive Ft 2.05 billion in cash for operating costs. This money will come from revenue from air traffic fees collected by Eurocontrol, then distributed to HungaroControl.
The government decision allows for a further Ft 4 billion of capital injections to be made by April 30, 2007. The state has set a Ft 17.85 billion revenue target for HungaroControl's operation this year, down from Ft 18.24 billion in 2005. HungaroControl must complete preparations to establish meteorological services for aircraft control by December 31, 2007, according to the government decision. The preparations must include a financing structure and a schedule of fees.
The government converted HungaroControl into a company in order to bring the controller in line with recommendations of the EU's Single European Sky concept.