Growth is offset by cost increases (150 words)

Published: 7/28/2000

Zsolt Hernadi, Chairman of the state-owned Malev Hungarian Airlines, resigned on 17th July in a not unexpected move after his recent election as Chairman of Hungarian oil and Gas company MOL. Hernadi will remain on the board of the flag carrier and Ferenc Szarvas of the Hungarian Privatization and State Holding Company (APV) will replace him. As the company approaches privatisation, it also reported encouraging top line growth figures for the first half of 26%, although they were somewhat offset by rises in costs of 27% due, according to Malev, to higher fuel prices, which rose to HUF8 billion in the fist half after HUF3.5billion in the same period in 1999. The elimination of the airline's expensive Tu-154s and replacement with Boeing 737s will save some costs this year and the airline expects to make personnel savings of HUF3 billion this year.

Article ID: 1960