Hungarian flag carrier Malev is gearing up to join one of the global alliance groupings while pushing ahead with a restructuring programme.
New chief Antal Pongracz is keeping its options open, but re-opening talks with British Airways, which broke off last May, will be high on his agenda.
As part of a bid to position itself for a possible global alliance, Pongracz is also planning to rejig Malev's entire cost structure and to develop a new route strategy.
Pongracz wants to develop its route network in eastern Europe and central Asia. Malev took the first steps by opening at the beginning of March a new route to Sarajevo in Bosnia.
To compete with other central Asia players Lufthansa and Austrian Airlines and attract a global partner, Pongracz says he wants to see Budapest's Ferihegy Airport developed into a hub, a move strengthened by recently revealed plans to build a second new terminal at the site.
But Malev will have to cut back on some of its existing routes if it is to fulfill its plans. For while the carrier aims to renew its fleet - it is replacing its Boeing 737-200s with more modern 737-500s - it will not be expanding capacity to cope with the extra demand.
Miklos Bencze, the head of Malev's legal and administration department, says the carrier would look for a partner while also carrying out the restructuring plan.
One of the benefits of an alliance would be to boost the carriers weak yields which contributed to continuing operating losses, say sources close the company.
On the other hand, the source adds, the carrier is relatively low cost and within the context of a global alliance, Malev could takeover the some of the short-haul network of higher cost alliance members.
Source: Airline Business
