Malev Gets New Cash Injection To Stay Afloat

[Oneworldplus2]

Malev Gets New Cash Injection To Stay Afloat


Hungary's loss-making national airline Malev got a HUF5.7 billion forint (USD$26 million) emergency cash injection from the state to pay for aircraft leases, the development ministry said.
The weekly Figyelo said earlier on Thursday that Malev had trouble paying International Lease Finance Corporation (ILFC) on time for the lease of its fleet.
Figyelo cited one unnamed source as saying Malev had overdue debt worth about HUF3 billion to ILFC.
"Without the HUF5.7 billion assistance, Malev's situation would have become almost completely unsustainable," the National Development Ministry said.
It said the new loan, used primarily to pay obligations under the lease contract with ILFC, also ensured that the airline -- which was renationalised by the previous Socialist government in February -- remained viable.
"The February state action and the funds approved in April... have temporarily resolved liquidity problems," the ministry said. "However, changes are needed in the airline's operation and efficiency as this system is unsustainable in the long run."
The ailing carrier received a total HUF9.2 billion worth of fresh loans from the state this year, Figyelo reported, citing Zoltan Kamaras, who represents the Hungarian National Asset Manager (MNV) on the board of Malev.
The airline, which has been struggling with financing over recent years, posted a loss of HUF24.4 billion in 2009.

(Reuters)
Malev Gets New Cash Injection To Stay Afloat

Seems like Oneworld isn't doing to good at the moment.

JAL has filed for bankruptcy protection this year.
Mexicana is bankrupt
Now Milev is also on the verge

[samh004]

If they were given a loan equivalent to USD$26 million and needed half of that (so USD$13 million) to pay off their debts, then I’d say they’re not in as troubled waters as the other two, though still, the OW Alliance can sure pick them!

[docjames]

Is it just me or does US$26m seem like a smallish amount.

Which leads to the thought:

The situation must be so dire banking providers wont lend them what in the scheme of running an airline is a piddly small sum.

[drron]

The problem is Hungary itself.it also has a debt crisis but has bitten the bullet early.Problem was a lot of borrowing done in Euros and the Florint has gone down against it.I dont think banks want to lend to Hungary especially in florints.
This article doesn't surprise me.Had a MA flight cancelled this morning "for technical reasons".Whilst waiting for our LH flight there was an announcement for another MA cancellation for technical reasons.