Malév Hungarian Airlines

Malév Hungarian Airlines, formally MALÉV Ltd. and historically known in Hungarian as Magyar Légiközlekedési Vállalat, was Hungary’s national flag carrier from its creation in 1946 until it stopped flying on 3 February 2012. The company was headquartered in Budapest and operated its principal hub at Budapest Ferihegy, now Budapest Ferenc Liszt International Airport. At the end of its life, Malév connected Hungary with a broad network of European and Middle Eastern destinations and was one of the most visible symbols of Hungarian international transport. The airline originated in the postwar reorganization of Hungarian civil aviation. On 29 March 1946, the Hungarian-Soviet Civil Air Transport Joint Stock Company, known as Maszovlet, was established through the combination of earlier Hungarian aviation enterprises and the Hungarian interests of Aeroflot. Its early equipment included Soviet-built Lisunov Li-2 aircraft, the licensed Soviet version of the Douglas DC-3, as well as small Polikarpov Po-2 aircraft used for specialized mail operations. In 1954, Hungary acquired the Soviet stake in Maszovlet and renamed the company Malév. Its network and fleet subsequently expanded through the introduction of Ilyushin turboprop aircraft and Tupolev jet airliners, allowing it to serve destinations across Central and Eastern Europe, the wider continent, and the Middle East. Malév began a major transition away from Soviet-designed aircraft before the political transformation of 1989. In November 1988 it introduced a Boeing 737-200, becoming one of the first airlines in the then-communist Comecon region to operate a Western-built aircraft. During the 1990s and 2000s it progressively retired its Soviet-era fleet. Boeing 737 Next Generation aircraft became the mainstay of its medium-haul operation, while Bombardier Dash 8 Q400 aircraft served shorter regional routes. The airline also undertook an important humanitarian and historical role between 1989 and 1991, operating charter services from Moscow to Tel Aviv through Budapest in cooperation with the Jewish Agency. These flights helped more than 160,000 Soviet Jewish refugees reach Israel during a period when direct Soviet-Israeli air links were unavailable. The company’s ownership changed repeatedly. The Hungarian state was the dominant shareholder for much of the 1990s, while privatization efforts culminated in the sale of a controlling interest to AirBridge in 2007. Russian financial and aviation interests later became involved through AirBridge and Vnesheconombank. Malév joined the Oneworld alliance on 29 March 2007, strengthening its international network and codeshare relationships. In February 2010, the Hungarian state re-nationalized the airline, taking a 95 percent stake while AirBridge retained the balance. Despite fleet modernization and a substantial route network, Malév remained burdened by financial problems, ownership complications, and accumulated liabilities. The European Commission concluded in January 2012 that state support received between 2007 and 2010 was unlawful and required repayment of approximately 38 billion Hungarian forints. The airline was unable to fund continued operations. After creditors seized aircraft abroad, Malév suspended all flights at 06:00 Central European Time on 3 February 2012, ending 66 years of continuous service. The Metropolitan Court of Budapest declared the company insolvent on 14 February 2012, and a court-appointed liquidator began winding it up. Before closure, Malév employed about 2,600 people, carried approximately 3.2 million passengers in 2011, and accounted for a substantial share of traffic and revenue at Budapest Airport.

Hungarian civil aviation developed before the Second World War through companies including Aero Rt., Maefort, and Malért. Wartime destruction interrupted commercial service, and the postwar authorities reorganized the sector around Maszovlet. Founded on 29 March 1946, Maszovlet was a Hungarian-Soviet joint-stock airline created through the combination of surviving Hungarian aviation organizations and Aeroflot’s Hungarian interests. Its initial fleet included Li-2 passenger aircraft and Po-2 aircraft used for precision mail delivery. In 1950, the airline moved its operating base from Budaörs to the newly opened Ferihegy Airport. Hungary bought all Soviet shares in Maszovlet on 25 November 1954 and renamed the company Malév. During the following decades, the carrier expanded with Ilyushin Il-14 and Il-18 aircraft, followed by Tupolev Tu-134 and Tu-154 jets. These aircraft supported the growth of a network linking Budapest with nearby states, other European markets, and destinations in the Middle East. Malév also experienced serious safety and security incidents during the early decades of operation, including several accidents involving its historic Soviet-built fleet and a number of hijackings. These events formed part of the wider history of civil aviation during the Cold War. A strategic transformation began in the late 1980s. Malév introduced its first Western-designed aircraft, a Boeing 737-200, on 18 November 1988. The change marked a gradual break with its Soviet equipment heritage. Its final Tupolev Tu-154 aircraft left service in 2001, and from 2003 the airline replaced Boeing 737 Classic aircraft with Boeing 737 Next Generation jets. A fleet of 18 Boeing 737 Next Generations and four Bombardier Dash 8 Q400s represented the carrier’s modernized short- and medium-haul operation near the end of its life. During the political and economic transition of 1989–1991, Malév operated charter flights from Moscow to Tel Aviv through Budapest in cooperation with the Jewish Agency. Because direct flights between the Soviet Union and Israel were not then permitted, the service provided an important route for Soviet Jewish emigration and carried more than 160,000 refugees. The airline also changed its visual identity during this period; the logo ultimately associated with the company was designed by László Zsótér in 1986 and adopted progressively in later years. Ownership became a persistent issue after the end of state socialism. The Hungarian State Privatization Company remained the principal shareholder through much of the 1990s, although minority positions were held by employees, local governments, and Italian aviation-related entities at different times. AirBridge acquired approximately 99.9 percent of Malév in February 2007. That year, the airline joined Oneworld despite discussions involving SkyTeam. In 2009, Vnesheconombank took a 49 percent interest in AirBridge, while the Hungarian government re-nationalized Malév in February 2010 with a 95 percent holding. Management attempted further modernization and growth. In 2009, Malév signed a letter of intent for 15 Sukhoi Superjet 100 aircraft with an option for 15 more, but the plan was suspended in 2011. The airline’s network ultimately covered roughly 50 destinations in Europe and the Middle East, while long-haul services to North America had already been discontinued. Its financial position nevertheless deteriorated. The European Commission opened a state-aid investigation in December 2010 and in January 2012 ruled that aid received from 2007 to 2010 was incompatible with European Union rules. Repayment of approximately 38 billion forints, a sum described as comparable to the airline’s 2010 revenue, was required. Malév reported that it could no longer finance its operations at the end of January 2012. Creditors seized two aircraft at foreign airports, and the airline stopped all flights on 3 February. Its debts were reported at approximately 60 billion forints at the time of closure. The Budapest Metropolitan Court declared the company insolvent on 14 February 2012 and assigned liquidation to Hitelintézeti Felszámoló Nonprofit Kft. The shutdown ended 66 years of operation and left Budapest Airport without its historic national carrier. In 2011, Malév had carried about 3.2 million passengers, employed approximately 2,600 people, and generated around 40 percent of Budapest Airport’s revenue according to the referenced account.

• 2012

  Operations cease and insolvency follows

  [1]Malév Hungarian Airlinesen.wikipedia.org

  Malév stopped flying on 3 February and was declared insolvent on 14 February.

• 2010

  Renationalization

  [1]Malév Hungarian Airlinesen.wikipedia.org

  The Hungarian state acquired a 95 percent stake in the airline.

• 2007

  AirBridge acquisition and Oneworld membership

  [1]Malév Hungarian Airlinesen.wikipedia.org

  AirBridge acquired control of Malév, and the airline joined Oneworld on 29 March.

• 2001

  Final Tupolev Tu-154 retires

  [1]Malév Hungarian Airlinesen.wikipedia.org

  The airline completed the withdrawal of its Soviet-era Tupolev Tu-154 fleet.

• 1988

  First Boeing 737 enters service

  [1]Malév Hungarian Airlinesen.wikipedia.org

  Malév introduced a Boeing 737-200, beginning its transition to Western-designed aircraft.

• 1954

  Maszovlet becomes Malév

  [1]Malév Hungarian Airlinesen.wikipedia.org

  Hungary acquired the Soviet shares on 25 November and renamed the airline Malév.

• 1946

  Maszovlet is founded

  [1]Malév Hungarian Airlinesen.wikipedia.org

  The Hungarian-Soviet Civil Air Transport Joint Stock Company was established on 29 March as the postwar national airline organization.

National flag carrier and full-service network airline representing Hungary in international aviation.

• Passenger air transport · 1946

  Scheduled passenger services

  Malév’s principal business was scheduled passenger transportation from its Budapest hub. Near the end of its existence, the airline served approximately 50 destinations across Europe and the Middle East with a predominantly Boeing 737-based fleet supplemented by regional turboprops.

• Air freight

  Air cargo services

  The carrier provided cargo capacity alongside its passenger network. Air freight formed part of its traditional national-airline offering, although the available reference material does not specify a separate cargo brand or product name.

• Charter aviation

  Charter flights

  Malév operated charter services in addition to scheduled routes. Its Moscow–Budapest–Tel Aviv flights during 1989–1991 were a particularly significant charter operation, supporting the movement of Soviet Jewish refugees to Israel.

• Regional passenger aviation

  Regional services

  Bombardier Dash 8 Q400 aircraft were used for shorter-haul and regional routes, complementing the Boeing 737 fleet and allowing the airline to serve smaller markets within its European network.

• 2012

  Illegal state-aid ruling

  The European Commission determined that financial support received by Malév between 2007 and 2010 violated European Union state-aid rules and ordered Hungary to recover approximately 38 billion forints from the airline.

  Source

Read more

• 1989Moscow–Tel Aviv refugee airlift

  Soviet Union · Hungary · Israel

  In cooperation with the Jewish Agency, Malév operated charter flights from Moscow to Tel Aviv via Budapest. The arrangement provided an indirect air corridor for Soviet Jewish emigration at a time when direct Soviet-Israeli flights were not allowed.

  Outcome. The operation helped more than 160,000 Soviet Jewish refugees reach Israel between 1989 and 1991.

  Source

• 2012

  Suspend all flight operationsStrategy

  Background

  Malév reported that it could no longer finance its operations, while creditors had begun taking action against its aircraft.

  Action taken

  The airline halted every flight on 3 February 2012 and subsequently entered insolvency proceedings.

  Aftermath

  The shutdown ended the national carrier’s 66-year operating history and led to liquidation.

  Reported total debt at shutdown. approximately 60 billion Hungarian forints (2012)

  Source

• 2010

  Hungarian state reclaims controlM&A

  Background

  Continuing losses and ownership instability followed the AirBridge privatization and the involvement of Russian financial interests.

  Action taken

  Hungarian state holding company MNV acquired 95 percent of Malév, leaving 5 percent with AirBridge.

  Aftermath

  Renationalization provided state control but did not prevent the airline’s later insolvency.

  Source

• 2009

  Plan to acquire Sukhoi Superjet 100 aircraftProduct launch

  Background

  The airline was pursuing fleet renewal while Russian financial and aviation interests had become involved in its ownership structure.

  Action taken

  Malév signed a letter of intent for 15 Sukhoi Superjet 100 aircraft, with an option for 15 additional aircraft.

  Aftermath

  The proposed order was suspended in 2011 and was not completed before Malév ceased operations.

  Source

• 2007

  Join OneworldStrategy

  Background

  Malév sought stronger international connectivity and had also been discussed as a possible associate of SkyTeam.

  Action taken

  The airline joined Oneworld on 29 March 2007 and expanded its alliance and codeshare relationships.

  Aftermath

  Oneworld membership strengthened Malév’s global distribution, but did not resolve its underlying financial problems.

  Source

• 1988

  Adopt Western-built Boeing aircraftGeneration change

  Background

  Malév began moving away from its Soviet-designed fleet before the end of the communist period and sought more internationally competitive equipment.

  Action taken

  It introduced the Boeing 737-200 on 18 November 1988 and later moved to Boeing 737 Next Generation aircraft.

  Aftermath

  The decision began the fleet modernization program that ultimately replaced the airline’s Soviet-era aircraft.

  Source

1. 1Malév Hungarian Airlinesen.wikipedia.org