Air France discusses strategic partnership

Published: 3/7/2000

The privatisation of Hungary"s national airline, Malev, is reported to be high on the government"s agenda, as is the choice of a strategic partner for the airline. According to Kalman Kantona, Minister of Telecommunications, the telecommunication sector is also being privatised; Air France has emerged as the latest potential purchaser of a 10-15% stake. Negotiations took place between Air France, APV, the state privatisation agency and the Telecommunications Ministry on 3rd March. Kantona said that Malev"s privatisation could also involve an IPO. In August 1999, Malev became 97% state-owned, when OTP Bank and the Hungarian Foreign trading Bank (MKB) sold 35% of the airline to APV. Malev according to CFO Erzsebet Antal, is about to sign the much-discussed agreement with Lufthansa Technik (LHT), on a joint venture for the maintenance at Budapest Airport. Malev will, according to local reports, own 85% of the new company and LHT, 15%. The work will be undertaken in two hangars rented from the Hungarian airport operator, LRI, although additional reports have suggested that the venture will use Aeroplex facilities. Malev"s own aircraft are maintained and upgraded by a separate company, Aeroplex. The initial contract will cover the maintenance of only LHT aircraft, but other partners may be sought in the future. Last November, it was mooted that the Miami-based Aviation Sales Company may also strike an agreement with Malev, over the development of a central aircraft repair plant for the whole of Central Europe. This seemed incompatible with the LHT proposal, as it would have meant both ventures working alongside each other at the airline"s Aeroplex complex. However, at the time, ASC was tight lipped about any such discussions and it seems that Malev"s announcement was premature. It appears that any talks that were taking place have come to an end and Malev have rejected Aviation Sales interest in Aeroplex. Associated articles: www.concise.org. 26th August 1999: Prolonged struggle for Malev at an end 23rd November 1999: The Aviation Sales Company comes to Europe

Article ID: 1517