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Malév Hungarian Airlines

Malev redirects here. For the military unit, see Malev (military unit)
Malév Hungarian Airlines
Magyar Légiközlekedési Vállalat
IATA
MA
ICAO
MAH
Callsign
MALEV
Founded 1946 (as Hungarian-Soviet Civil Air Transport Joint Stock Company)
Commenced operations 25 November 1956
Ceased operations 3 February 2012 (2012-02-03)
Hubs Budapest Liszt Ferenc International Airport
Frequent-flyer program Duna Club
Alliance Oneworld (2007-2012)
Fleet size 22 (stored)
Destinations 0
Company slogan Wings to fly
Parent company MNV
Headquarters Budapest, Hungary
Key people Lóránt Limburger (CEO)
Website http://malev.com

Malév Ltd.[1] (Hungarian: Malév Zrt.), which did business as Malév Hungarian Airlines (Hungarian: Magyar Légiközlekedési Vállalat, abbreviated Malév, and pronounced MAH-lev), was the flag carrier and principal airline of Hungary between 1946 and 2012. It had its head office in Budapest, with its main operations at Budapest Liszt Ferenc International Airport. From there, the airline flew to 50 cities in 34 countries worldwide using a fleet of 22 aircraft. In its final years, Malév was a member of the Oneworld alliance, having joined 29 March 2007.[2] On 3 February 2012, Malév stopped flying[3] and on 14 February 2012 was declared insolvent and ordered liquidated by the Metropolitan Court of Budapest.

Contents

History

Beginnings

Hungarian civil aviation was pioneered by airlines such as Aero Rt. (founded 1910), Magyar Ćeroforgalmi Rt. (MAEFORT) and Magyar Légiforgalmi Rt. (Malert). The widespread devastation of World War II forced these airlines to suspend service, and they were ultimately replaced by Malev as the national airline after the war. Malev was founded on 29 March 1946, as the Hungarian-Soviet Civil Air Transport Joint Stock Company (Magyar-Szovjet Légiforgalmi Rt. also known as Maszovlet).

The initial fleet consisted of 21-seat Li-2 passenger aircraft (the Soviet-licensed DC-3) and 3-seat Po-2 "taxis", used for precision air mail: sacks of mail were dropped from the aircraft when flying over its destination. In 1950, Malév's operating base moved from Budaörs to the newly opened airport at Ferihegy, where it remained.

On 25 November 1956, Hungary acquired all the Soviet shares of Maszovlet, and Malév was born. Ilyushin Il-14 twin piston-engined transport aircraft were acquired in the late 1950s. Operations were expanded, with flights extending to nearby countries and, following the 1965 acquisition of Ilyushin Il-18 turbine propellor airliners,and the subsequent 1968 purchase of jet-powered Tupolev Tu-134s from the Soviet Union, across Europe and the Middle East.

Even before the political changes of 1989 and the arrival of democracy, Malév had begun phasing out its Soviet-era planes with the introduction of the airline's first western designed aircraft, a Boeing 737-200 on 18 November, 1988.[4][5]

With that, Malév was the first among the airlines in the then-communist countries of Central Europe to operate a western-built aircraft (LOT - Polish Airlines was the second with its Boeing 767-300 aircraft launched in April 1989[6]).

The company's logo which turned out to be the last one, was designed by graphic designer László Zsótér (DLA) in 1986 and consecutively adopted during the following years.[7]

1990s-2007: Modernisation

The last Soviet-built Tupolev Tu-154 aircraft was withdrawn from service in 2001. In 2003, Malév began replacing its Boeing 737 Classic aircraft with 737 Next-Generation planes. It then ran a fleet of 18 Boeing 737 Next Generations, as well as 4 Bombardier Dash 8 Q-400s for short-haul routes.[8]

From 1999 to 2007, the Hungarian State Privatization Company ÁPV Rt. (Állami Privatizációs és Vagyonkezel Rt.) owned 99.5% of Malév shares. The other 0.5% were in the hands of small shareholders. ÁPV Rt repeatedly tried to privatise Malév, finally selling it to AirBridge Zrt.

2007-2011: In private hands

AirBridge acquired 99.9% of the airline in February 2007. It had 1,785 staff members, as of 31 December 2007.[9]

Despite Czech Airlines' offer to sponsor Malév as an associate member of the SkyTeam alliance, and Malév's codeshare agreements with several SkyTeam carriers, Malév joined Oneworld on 29 March 2007.

On 12 July 2007 Lloyd Paxton was appointed CEO of Malév. Paxton replaced János Gönci, who remained on the board of directors as an adviser. Mr Paxton had been with British Airways for over 35 years and more recently with Air Astana. Mr Paxton was the first Malév CEO to come from the airline industry. Two months later, on 14 September 2007, Lloyd Paxton resigned as CEO of Malév, replaced by Péter Leonov.[10] In January 2009, Ballo Anatoly Borisovich became the chairman.[11]

On 18 March 2009 the Russian state-owned Vneshekonombank took a minority stake of 49% in AirBridge Zrt which held the shares of the struggling airline. The majority, 51%, remained in Hungarian ownership. The managing control would be taken by Russia's Aeroflot - Russian Airlines[citation needed]. Martin Gauss, former CEO of DBA and Cirrus Airlines as well as a Boeing 737 pilot was elected as CEO on 15 April 2009.[12] During the management of Martin Gauss, Malev reached a load factor above industry average among "traditional" airlines, comparable of that of low cost airlines. One of the reasons of the departure of Martin Gauss as CEO of Malev was the benefit ceiling established by the newly elected government, lead by Orban Viktor, in 2010, where a ceiling of 8000 gross salary (approx 5000 net) was set for all managers, governing state owned companies.

The airline was renationalised in February 2010, with Hungarian Government state holding company MNV acquiring a 95 per cent stake in the airline. The remaining 5 per cent remained with AirBridge.[13] In December 2010, the European Commission began an investigation into illegal government subsidies of Malév.[14]

2012 - Financial collapse and cessation of operations

On 9 January 2012, the European Union considered the state aid received by Malev illegal and ordered Hungary to recover from the company nearly Ft 100 billion ( $406 million).[15] At the end of January 2012, Malév announced that it could no longer fund its own operations, and requested more subsidies from the Hungarian government.[16] Malév ceased all flight activity on 3 February 2012, after 66 years of continuous operation. It came after the European Commission ordered Malév to repay various forms of state aid received from 2007 to 2010, totalling 38 billion forints (130 m; $171 m; Ł108 m), a sum equal to its entire 2010 revenue.[17] The airline's total debts were 60 billion forints (US$270.5 million) at the time of shutdown.[18] The shutdown occurred at 6 AM Western European Time on 3 February 2012.[19] On 14 February 2012, the Metropolitan Court of Budapest declared Malév Ltd. insolvent. Hitelintézeti Felszámoló Nonprofit Kft. (Credit Institutional Liquidator Nonprofit Ltd.) received the appointment as the liquidator of Malév Ltd.[20]

Corporate affairs

Before its closure, the airline had 2,600 employees and had almost half of all of the air traffic at Budapest Ferenc Liszt International Airport.[17] In 2011 about 40% of the revenues at Budapest airport originated from Malév operations,[21][22] and during that year the airline served 3.2 million passengers.[23]

Ownership

The airline was privatised in the 1990s.[24] In December 1993, ÁPV Plc. sold 40,316 "A" series shares to the airline's employees. In 1998 ÁPV Plc. held 64.089% of the company (4,929,954 shares), Alitalia-Linee Aeree Italiane held 30% (2,307,693 shares), Simest held 5% (384,615 shares), private entities held .333% (25,577 shares), and several local governments held the rest of the company. Local governments with stakes in Malév were Agárd, Balatonlelle, Budapest, Debrecen, Budapest District 5, and Budapest District 18.[25]

In 2007 the Russian brothers Alexander and Boris Abramovich acquired 49% of AirBridge Zrt as part of a privatisation program of the Hungarian government. After the AiRUnion alliance of the Abramovich brothers went bankrupt in 2009, Vnesheconombank took over the Abramovich stake.[26]

The government of Hungary re-nationalized the airline on 26 February 2010, after Malev experienced changes in ownership and financial difficulties. The government held 95% of the airline while AirBridge Zrt held 5%.[27] AirBridge Zrt was 51% owned by Kálmán Kiss and Magdolna Költ, two Hungarian individuals, and 49% owned by Boris Abramovich. Prior to 26 February 2010, AirBridge Zrt held 99.95% of Malév and minor shareholders held .05%.[28]

Head office

Malév's head office was located inside the Lurdy House (Lurdy Ház) in Budapest.,[29][30] an office and shopping complex, opened in 1998.[31] Previously the airline head office was located elsewhere in Budapest.[32][33] The airline signed a lease agreement in the spring of 2011 with Budapest Ferenc Liszt International Airport agreeing to relocate its headquarters to three office buildings between Terminal 1 and Terminal 2 in the airport by the summer of 2012,[34] but these plans were cancelled due to the shutdown.[35]

Destinations

Malév Hungarian Airlines offered scheduled services to about fifty destinations in Europe and the Middle East; charter flights were also flown. Flights to Africa, Southeast Asia, and North America had been terminated. Services on the Budapest-Toronto and Budapest-New York-JFK routes were suspended in mid-November, 2007.[36] Then, on 23 July 2008, Malév announced the cancellation of the New York and Toronto flights; these had been operated since the early 1990s.

Prior to the shutdown, five of Malév's destinations (Cluj-Napoca, Odessa, Podgorica, Sarajevo, and Târgu Mure) were not served by any other Oneworld members.[37]

Codeshare agreements

Malév Hungarian Airlines had codeshare agreements with the following airlines, beside Oneworld members:

Fleet

Malév's fleet consisted of the following aircraft, with an average age of 8.4 years, at the time of its shutdown on 3 February 2012:[38][39][40]

Malev Fleet
Aircraft Number Passengers
J Y Total
Boeing 737-600 6 9 100 109
Boeing 737-700 7 14 107 121
Boeing 737-800 5 29
139
180
168
180
Boeing 767-200ER 1 24 161 185
Bombardier Dash 8 Q400 4 72 72
Total: 23
Retired

restaurant in Abda

Incidents and accidents

See also

Budapest portal
Hungary portal
Companies portal
Aviation portal


References

  1. ^ It was previously Malév Rt. [1]. The 1995 annual report refers to it as "Malév Plc."
  2. ^ "Directory: World Airlines". Flight International. 10 April 2007. pp. 4647. 
  3. ^ "Malev stops flying Survival of the fittest". The Economist. 3 February 2012. Retrieved 6 February 2012. 
  4. ^ http://www.planespotters.net/Production_List/Boeing/737/22979,HA-LEC-Malev-Hungarian-Airlines.php
  5. ^ http://www.academia.edu/1459455/Pannonian_Winds_of_Shame
  6. ^ http://rzjets.net/aircraft/?reg=41426
  7. ^ http://www.trendguide.hu/?kult/817-csodben-a-magyar-design-legenda
  8. ^ "Malév history". Malév.com. Retrieved 13 February 2010. 
  9. ^ "Annual Report 2007". Malév Ltd. Retrieved 13 February 2010. 
  10. ^ "Lloyd Paxton Leaves Malév After Two Months, Peter Leonov Is New CEO". Airliner world. 14 July 2007. Retrieved 31 July 2010. 
  11. ^ "Focus on Europe" (Press release). Malév Hungarian Airlines. 27 August 2008. Retrieved 13 February 2010. 
  12. ^ "Experienced Germaan airline manager" (Press release). Malev.com. 16 April 2009. Retrieved 13 February 2010. 
  13. ^ [url=http://www.flightglobal.com/articles/2010/02/27/338886/troubled-malev-is-renationalised.html%7C title=Flightglobal: Troubled Malév is renationalised] 27 Feb 10
  14. ^ "Sceptical EU opens state-aid probe into Malév's financing". Retrieved 2 January 2011. 
  15. ^ Reals, Kerry. "EC orders struggling Malev to pay back 'illegal' state aid". Flightglobal. Reed Elsevier. Retrieved 3 February 2012. 
  16. ^ "Malev begs Hungary's govt for help as it runs out of cash". Flightglobal. Retrieved 31 January 2012. 
  17. ^ a b "Hungarian airline Malev collapses." BBC. 3 February 2012. Retrieved on 3 February 2012.
  18. ^ "Hungarian National Airline Halts Flights." The New York Times. 4 February 2012. Retrieved on 3 February 2012.
  19. ^ Flynn, Pat. "Shannon benefits from airline closure." The Irish Times. Saturday, 4 February 2012. Retrieved on 4 February 2012.
  20. ^ "INFORMATION ABOUT THE WINDING-UP OF MALÉV LTD." (Archive) Malév Hungarian Airlines. Retrieved 16 February 2012.
  21. ^ Eddy, Kester. "Malev grounds fleet over unpaid debts." Financial Times. 3 February 2012. Retrieved on 4 February 2012.
  22. ^ Dunai, Marton and Gergely Szakacs. "Rivals swoop in as Hungary's Malev stops flying." Reuters. Friday 3 February 2012.
  23. ^ http://www.bloomberg.com/news/2012-02-03/malev-stops-flying-after-66-years-as-hungary-cuts-its-losses.html
  24. ^ "Hungarian National Airline Calls it Quits." The Wall Street Journal. 3 February 2012. Retrieved on 4 February 2012.
  25. ^ "Owners' Structure." Malév Hungarian Airlines. 13 June 1998. Retrieved on 4 February 2012.
  26. ^ "Malev Goes Bankrupt Owing $130M to VEB." Vedomosti, The Moscow Times. 6 February 2012. Retrieved on 6 February 2012.
  27. ^ "Malév ownership structure." Malév Hungarian Airlines. 26 May 2011. Retrieved on 4 February 2012.
  28. ^ "Malév ownership structure." Malév Hungarian Airlines. 11 February 2009. Retrieved on 4 February 2012.
  29. ^ "Terms & Conditions." Malév Hungarian Airlines. Retrieved 28 February 2010.
  30. ^ "Communicating change." Europe Intelligence Wire. 12 January 2004. Retrieved 28 February 2010. "Varadi spoke recently with reporter Anita Benko at Malév's head office in the Lurdy Haz shopping and..."
  31. ^ "About Us." Lurdy Ház. Retrieved 28 February 2010.
  32. ^ "World Airline Directory." Flight International. 26 March 1 April 1997. 86.
  33. ^ "Offices in Hungary." Malév Hungarian Airlines. 13 June 1998. Retrieved 28 February 2010.
  34. ^ "Property development." (Archive) Budapest Ferenc Liszt International Airport. Retrieved on 11 December 2011.
  35. ^ "Csomagol a Malév a Lurdy Házban?" Ingatlanmenedzser. 3 February 2012. Retrieved on 4 February 2012.
  36. ^ "New York and Toronto flights suspended for winter" (Press release). Malév Hungarian Airlines. 
  37. ^ "Malév flight suspension - advice for customers." (Archive) Oneworld. 3 February 2012. Retrieved on 3 February 2012.
  38. ^ Malev official fleet page
  39. ^ Airfleets for Malév
  40. ^ Malev Fleet
  41. ^ "ASN Aircraft accident Ilyushin 18V HA-MOD Paris-Le Bourget". Aviation-safety.net. Retrieved 13 February 2010. 
  42. ^ "ASN Aircraft accident Ilyushin 18V HA-MOC Saltholm Island". Aviation-safety.net. Retrieved 13 February 2010. 
  43. ^ Accident description for HA-LBD at the Aviation Safety Network. Retrieved on 13 February 2010.
  44. ^ "ASN Aircraft accident Tupolev 134 HA-LBC Urziceni". Aviation-safety.net. Retrieved 13 February 2010. 
  45. ^ "2 Czech Youths Hijack Jetliner to West Germany". Los Angeles Times. 30 March 1989. Retrieved 19 August 2010. 
  46. ^ posten (14 February 2009). "AUA-Maschine musste nach Start in Skopje umkehren - Flugzeugunglücke - derStandard.at " Panorama". Derstandard.at. Retrieved 13 February 2010. 
  47. ^ "Dva prinudna sletanja u Skoplju" (in Serbian). B92. 13 February 2009. Retrieved 13 February 2010. 
  48. ^ " " (in Macedonian). A1.com.mk. 13 February 2009. Retrieved 13 February 2010. 
  49. ^ "Accident: Malev B738 at Heraklion on Jun 25th 2011, tail strike on landing". Avherald.com. Retrieved 6 February 2012. 

External links


This article based on this article: Malevexternal Link from the free encyclopedia Wikipediaexternal Link and work with the GNU Free Documentation License. In Wikipedia is this list of the authorsexternal Link.