More OW woes-Malev Ceases operation.

[drron]

Malév shareholders to vote on HUF 8 bln capital raise | The Budapest Business Journal on the web | bbj.hu

An HUF 8 billion capital raise is the only point on the agenda for a shareholders meeting of Hungarian national airline Malév
The planned capital injection, however, is not enough: still needs another HUF 10.5 billion on top of this, business daily Napi Gazdaság learned on Thursday, without citing any sources.
The capital is necessary to bring Malév's net assets up to the minimum required by law. At present, the airline has net assets of negative HUF 22.5 billion.

But an interesting twist-
The Budapest Times - Hungary‘s leading English Language source for daily news

China’s Hainan Airlines Group (HNA) is considering investing in financially troubled Hungarian airline Malév, with negotiations already ongoing, airline industry trade magazine Air Transport World says it has learned from an insider in China.
The magazine said a successful conclusion would make HNA the first Chinese carrier to invest in a European airline. Prime Minister Viktor Orbán met Chen Feng, president of the Hainan Group and one of China’s richest businessmen, on his trip to China last November and they discussed the possibility of Chinese involvement in the airline industry in Hungary

 

[Danger]

Speaking of oneworld woes, Air Berlin are in trouble too. CNN were last night reporting they're cutting routes (sound familiar?) and Ryanair are ready to take up the slack.

 

[drron]

Malev in more strife.Seems the best way out is for Hungary to exit the EU.
UPDATE 1-Hungary's Malev airline runs out of cash | Reuters

 

[simongr]

So the EU has basically closed an airline that was making its way back to operational profitability.

 

[NM]

Speaking of oneworld woes, Air Berlin are in trouble too. CNN were last night reporting they're cutting routes (sound familiar?) and Ryanair are ready to take up the slack.

Perhaps Ryanair should be asked to join OneWorld?

 

[samh004]

Perhaps Ryanair should be asked to join OneWorld?

I honestly think OneWorld would do well to have Full Service and LCC partners, so long as status benefits remained.




 

[casanovawa]

Hmmm, was thinking of using QFF points to book a couple of award flights on Malev in June a few weeks ago...

Glad i didn't now....

 

[N860CR]

I'm not quite so lucky... have CDG-BUD-SKP-BUD booked on MA in J as part of a OneWorld award. They're not dead yet... but as there are no other OneWorld options into/out of SKP I'm guessing QF will tell me there's nothing they can do

 

[haydensydney]

I studied in Hungary for a year when I was younger - this is sad news if they do go bust - I can only imagine it would damage the Magyar psyche. They are a proud people who have gone through a lot since the GFC, with high unemployment, savage economic conditions and a faltering currency - Malev is a national symbol (like Qantas is to Australians) so it's downfall will be sad for the people of Hungary.

 

[samh004]

It appears they’ve ceased flying.

Malev Stops Flying as Hungary Cuts Its Losses - Bloomberg

 

[anat0l]

It appears they’ve ceased flying.

Malev Stops Flying as Hungary Cuts Its Losses - Bloomberg

What a shame.

At least they will go gracefully. Not like some airlines in some bigger country across the pond which hide behind their government protectionism, bank boosters and Chapter 11 provisions.

It's fair to say that if you don't have a nation with a lot of business to offer then it's unlikely to support its own airline, even if it is a national symbol. It doesn't help that MA's main rivals were LCCs (and the QF vs old DJ argument doesn't quite work here).

 

[drron]

Well I am glad I could not get the Aaward I wanted for July.We are off to istanbul and originally i wanted to go via HEL and BUD.It would have meant 2-4 MA sectors.Thankfully we are using RJ via AMM.

 

[Flashback]

Malev Airlines grounded

[snap] Hungary’s Malev grounded; Wizz steps in | beyondbrics | News and views on emerging markets from the Financial Times

Hungary airline Malev stops operating, flights grounded | Reuters

Feb 3 (Reuters) - Hungarian flag-carrier Malev announced on Friday that it had stopped operating because its liquidity situation has become unsustainable and all its flights had been grounded as of 0500 GMT on Friday.
The airline had been placed under extraordinary protection from creditors and a receiver was appointed earlier this week.
Malev said its suppliers had lost confidence in the airline and started to demand payment, while the government could no longer provide cash injections for the company.
"This has accelerated the outflow of cash to such an extent, that by today the situation of the airline has become unsustainable," Malev's board said in a statement.
The stoppage comes after the airline was ordered by the European Commission last month to repay millions of dollars worth of state aid received between 2007 and 2010. (Reporting by Krisztina Than)

 

[Simo]

Re: Malev Airlines grounded

IT sounds like another Ansett.

Real shame to see a long established business closing down.

 

[Sprucegoose]

Re: Malev Airlines grounded

IT sounds like another Ansett.

Real shame to see a long established business closing down.

Ansetts problem were her shareholders then that incompetent kiwi management.

Europe, well that could well the economy?

 

[Simo]

Re: Malev Airlines grounded

European economy would have been the biggest reason of the failure.

My reference to Ansett was only due to the fact a long established airline.

 

[Flashback]

Re: Malev Airlines grounded

I wonder if I can get another OneWorld airline to match my MA Gold in light of the news.......

 

[Kendall Roy]

Re: Malev Airlines grounded

Ouch!

Oneworld isn't having a good run with airlines going under lately!

 

[Bundy Bear]

Re: Malev Airlines grounded

Ouch!

Oneworld isn't having a good run with airlines going under lately!

You could say the same for Spanair and Star Alliance. Spanair Halts Flights, Stranding Travelers, as Lifeline Ends - Businessweek

Not good news for Oneworld and I didn't get to try out the 737-600, now have to rely on SAS to get a ride on that aircraft type.

 

[Flashback]

Re: Malev Airlines grounded

You could say the same for Spanair and Star Alliance. Spanair Halts Flights, Stranding Travelers, as Lifeline Ends - Businessweek

Not good news for Oneworld and I didn't get to try out the 737-600, now have to rely on SAS to get a ride on that aircraft type.

Beat me to the punch. Not a good time for European airlines in general....