Malev privatisation tender cancelled.
The proposed sale of struggling Hungarian state carrier Malev has been thrown into doubt once more after the Hungarian privatisation agency APV cancelled the tender for the airline.
The tender was cancelled after the sole bid from an international consortium headed by a former Malev CEO Aviation Solutions International failed to meet APV's basic requirements for the tender. The agency had asked for any potential buyer to keep on all Malev employees and absorb the airline's HUF36.2bn debt as well as bringing in domestic investors to maintain Malev's national carrier status.
Airline analysts declared the terms almost impossible to work with, which led to little interest in what would be a politically sensitive issue. Doubt has now been cast on Malev's future with fuel prices rising and the carrier expected to report a full year loss of HUF3.9bn its only glimmer of hope comes from the fact that it is based in a region seen as having strong potential by the airline industry, reports Reuters.
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|Publication:||Airline Industry Information|
|Article Type:||Brief Article|
|Date:||Nov 19, 2004|
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