MALÉV: CURIOUS TRICK

Malév Airlines wants to sell one of its most profitable businesses: the sales of fuel is to be bought by Budapest Airport Company which is just before the privatization process. Experts claim the transaction in preparation can violate EU regulations, too because of the cross-financing of the companies in state property

The general meeting of Malév decided in summer to reorganize the business of kerosene purchese, sale and servicing. The Airport Fuel Servicing Ltd is owned by Malév and its value is more than HUF 7 billion according to the American Appraisal Ltd and it serves 70 pc of of airplanes landing at Ferihegy airport. It is supposed that the sale of the company increases the value of Budapest Airport to be privatized soon. This transaction can be seen as subsidizing a state-owned company by another state company which is against EU-regulations. One of the small shareholders has contested the decision of the general meeting of Malév at an arbitration court.

Translated by Péter Szentmihályi Szabó