Loss-making Hungarian flag-carrier Malév has introduced a two-year stabilisation plan in a bid to return to profit. The plan includes a wage freeze which - with inflation in Hungary nearing 10% - unions are expected to resist.
The proposals aim to secure an extra 15 billion forints ($50 million) in revenues or savings in two years, to be delivered via three main measures.
A third would be secured by reviewing long-haul routes now served by two Boeing 767-200ERs and a single 767-300, on which Malév took a 10 billion forint loss last year - or more than half of the total. The airline says the routes will be sustainable only if it finds a strategic partner or joins a global alliance. Otherwise, says Malév president Ferenc Szarvas, it will have to pull out of the market.
A further third will be sought through cutting the workforce from 4,227 employees to 3,200-3,400. Overstaffing has plagued Malév for decades. The final third will be achieved through measures aimed at increasing revenue.
Two papers will go before the Malév board next month - one concerned with short-term stability, the other with long-term planning.
Source: Flight International
