Andrew Doyle/MUNICH
Lufthansa and Hungary's Malév have announced the formation of a maintenance joint venture to be sited in Budapest. It adds to speculation that the German flag carrier may be winning the race to invest in the soon-to-be privatised east European airline. The move will also further expand the global reach of Lufthansa Technik (LHT).
The new company, to be called LHT Budapest, will be 85% owned by the German company with Malév holding the rest, and begins operations in autumn next year. It is not clear how the new business will affect Malév's Aeroplex maintenance subsidiary. LHT Budapest will occupy part of one of the latter's hangars at Ferihegy Airport and will specialise in heavy maintenance work, mainly on Boeing 737s.
The new venture will employ 300 people, against nearly 900 at Aeroplex. Much of LHT's work, however, will be anticipated overspill from Shannon Aerospace, a narrowbody maintenance company jointly owned by Lufthansa and Swissair which will be operating at full capacity next year.
Hamburg-based LHTalready has maintenance joint ventures in Dublin, Brussels and Beijing, as well as Shannon. "The internationalising of our production operations is a key factor in our remaining competitive," according to Lufthansa Technik chairman Wolfgang Mayrhuber. "This gives us crucial flexibility with respect to costs and capacity," he adds.
Malév's privatisation has, meanwhile, drawn closer, with the government's purchase from two banks of a 35% share in the airline once owned by Alitalia. The move takes the state's holding in Malév to 97%. Budapest is to retain a 25% share of the airline, while 50% plus one share must remain under Hungarian control.
Potential investors include British Airways, although the UK carrier's relationship with Malév has cooled over the past year.
• Warsaw has given BA, Lufthansa and Swissair until 30 September to submit applications for a 10% stake (due to become 38%) in Polish flag carrier LOT.
The three airlines are on a shortlist of investors, with the privatisation to be completed before the end of this year.
Source: Flight International
