Following on from last week’s post about Czech air, the ex European bloc airlines have not fared well since the dissolution of the former Soviet states.

•  In Slovakia, Slovak Airlines closed in 2007, SkyEurope 2009 and Air Slovakia in 2010
• Last year, Malev, the airline of nearby Hungary collapsed and WizzAir has made continuous losses since launching in 2003
• Poland’s LOT is in financial difficulties
• Bosnia and Herzegovina B&H Airlines was grounded briefly last month
• Romanian government owned TAROM has had five years of losses
• Croatia Airlines has lost money almost every year since commencement in 1989 and was unable to pay for four A319s last October when it faced bankruptcy
• Slovenia’s Adria airlines has operated at a loss in 2005 and every year since 2008. The government tried to sell the airline in 2012 but no one wanted it
• A month ago, the Serbian government took over their carrier JAT ’s accumulated debt of $170million Euro, ahead of a tie up between JAT and Etihad which many hope will lead to an eventual Etihad takeover of the Serbian carrier
• Not quite Eastern Europe but over in Austria, Lauda airlines disappeared into Austrian in 2005 and Niki was taken over by Air Berlin in 2011 although unlike its new owner, it was profitable. Lufthansa took over Austrian Airlines in 2009 but were unable to stem years of losses. Last year, all of Austrian’s operations were handed over to its subsidiary Tyrolean Airways

Willie Walsh, CEO of IAG (British airways/Iberia) says there are too many airlines and favors widespread consolidation:
Will we have 1,057 airlines in five years’ time? I think the industry would be a hell of a lot better if there was half that number.

Who would take on East Europe’s airlines? Could we see Turkish or Lufthansa or IAG get the appetite for LOT? Ryanair or Easyjet or Air Berlin look at Wizz? JAT go to Etihad?

Whoever gets involved, I cannot see in five years time, the same number of Eastern European carriers. Maybe two or three big carriers (Lufthansa? Etihad?), a large regional and a smaller low cost carrier? Walsh will get his wish in this region at least!

I first visited Budapest exactly twenty years to the day of  my most recent visit. Communism had been gone for only three years and Budapest was ditching the old Socialist restrictions and emerging as a great city. Scarily, on this trip in 2012, -the agent who checked me into my hotel this trip had not even been born when I made my first visit.

Today, Budapest is definitely part of a free market economy. I have now been to Budapest five times since my first starry eyed visit and this city remains one of my all time favourites!

Aesthetics: 9.5 out of 10

UC guides say Budapest is the ninth most beautiful city in the world. I would concur and  almost three million tourists come to see for themselves, every year. Centred on the Danube River, on the left bank is Buda with its spectacular castle and stunning hillsides. On the right is Pest which is built on flatter ground and full of commercial buildings, churches and  apartments built over 300 years.  The region has been inhabited in one way or another for close on 2000 years. The two cities Buda and Pest united as Budapest in 1873.

Eighty percent of Budapest’s buildings were destroyed or damaged were destroyed by the Germans, Russians ,British and French in World War Two with most of the damage occurring in a few short months. All five bridges spanning the Danube River were destroyed. Some of the rebuilding of Budapest was not done well by the former regime who were keen to do away with some aspects of the past. For example Buda Castle was effectively gutted.

The city today is divided into numbered districts, just like Paris.  There are 23 Districts numbered clockwise in widening circles. Downtown Budapest districts have lower numbers (I., II.), while outer Budapest districts have higher numbers (XXI., XXII.). The middle two numbers in a Postcode indicate the district number. For example 1138 is a zip code of an address in the 13th (XIII) district.

Liveability 7 out of 1o

The greater Budapest area has 3.3 million people with the city proper being home to 1.75 million.

EIU’s quality of life index ranked it as the most liveable Central/Eastern European city .  Forbes ranked it as “Europe’s 7th most idyllic place to live” .  The Mercer Quality of living index places Budapest 74th in the world.

An average annual salary  is $US14, 177. The taxes in Hungary are very high. The Big Mac index says that at July, 2012, a McDonald’s big Mac is $US3.42, about the same as an hour’s wage. The theory goes onto suggest that the Hungarian Forint is undervalued. Restaurant meals set me back $US7 to $US20. A takeaway meal from a local food stand cost around $US3 to $4 including drink. International Fast food chains are more expensive. A cup of Coffee around $US1.40 and a bottle of wine between$US3 and $7. I bought amazing champagne for $US8 a bottle. Intercity train and bus rides cost around $US6 to $US10.

Temperatures drop to -4c (25F) in January and climb to 26.5C (80F) in July. Humidity is high. According to an EU study of 25 European cities, Budapest is second from last in air quality. Only Bucharest was worse. Cutting back on this pollution would mean 19,000 deaths could be avoided while almost two years could be added to life expectancy.

Hungary is the 46th least corrupt countryin the world.

Culture: 9 out of 10

As a result of the city being  ruled over by the Mongols, Turks, Hungarians, Germans and Russians over hundreds of years, it is very rich in diversity of  art, architecture, music and food. For example. there are over 200 museums in the city . Visit four a week and it would take a year!

Restaurants and cafes serve an impressive array of high quality delicious tasting foods.

Crime: 10 out of 10

Budapest has a very low crime rate. There is supposedly significant pickpocket activity in some parts of the city.  Locals will warn you to be careful at night in the outlying parts of Districts VII (Erzsébetváros- Jewish quarter) VIII (Józsefváros- the poorest district in Budapest) and IX (Ferencváros).

When I first came to Budapest in 1992, people warned me abut the taxis. People still warn of rogue taxi drivers with lots of anecdotal stories. No one I talked to had had a first hand experience of a bad taxi driver.

There are now homeless people congregating at key subway stations around the city. I also saw beggars at the entrances of many metro stops. There was none of this 20 years ago. They are not dangerous.

Transit: 8 out of 10

One of the  (few?) benefits of the Communist era was the preservation and expansion of  the tram (street car) and trolley bus system as well as construction  of a second and third metro line to complement the city’s 100 year old metro line (the oldest in continental Europe). As a result Budapest has some very best and busiest transit systems in the world with trans and trams running every few minutes.   Some of the buses, trains and metro cars are the exact same ones that were running when I was here 20 years ago -and the Soviet style cars looked old then. They are being slowly replaced with slick new vehicles. Also, a fourth Metro lineis being built.  You can also ride a cogwheel railway, a funicular, and chair lift.

The ticketing system is still the one from the Communist era and involves punching a ticket or showing a pass. A single ticket costs 320HUF . A Day Card is 1550 which is really good value especially if you combining it with a ride to or from the airport which requires two tickets. Ticket inspectors target tourists, according to reports by other travellers. Sure enough,  loaded up with luggage, I was surrounded by five who demanded a fine of 8000 HUF (around $35) for incorrectly punching my subway ticket. Of course, I was innocent but its hard to argue with people who could only say “Problem! 8000 Forint). It was the only negative incident in my travels.  I never got targeted when I was travelling without luggage. NB  I asked for and got a receipt.

Signage on vehicles and in stations and at bus and tram stops is brilliant. Many of the buses and trams also give you next stop information in English and Hungarian.

Getting to and from the airport by public transit is a little tricky but not impossible. Terminal One has a railway station right next to it. Unfortunate the air terminal is now closed and the new Terminal 2 several kilometres away. A bus connects the airport railway station, Terminal 2 and the nearest Metro station: Kőbánya-Kispest.   Service is very frequent.

Trams 2 and 19 run along the river and have stunning views.

Vibe: 9 out of 10

The Verdict: 86.6% 

On my city ranking, Budapest has a rating of 8.7 out of ten. Out of the 173 cities of over 100, 000 people I have visited, it comes in at 13th. This is slightly ahead of  Reykjavik, Iceland and just below Montreal, Canada and Chicago, Illinois, USA.

My Budapest Top Twenty

Ideally, give yourself a week in this city

1. Walk along the Danube on the Pest side so you have a view of Buda. Start at the beautiful Parliament House. Try and include Margaret Island -stunning island in middle of Danube
2. Explore Castle Hill and Buda Castle (Várhegy).  Take the funicular up and walk down- you can easily spend a whole day here
3. House of Terrors (Terror Haza). This was the centre of the both the Nazi Secret Police and then the Communist equivalent, Educational, sobering and challenging. Is this whats happening in North Korea? How can we stand by?
4. Budapest Great Synagogue and Jewish Quarter. I recommend these tours.
5. Central Market Hall (Központi Vásárcsarnok)
6. Chain Bridge – my favourite bridge in Budapest -The lions at each of the Chain Bridge were carved in stone by the sculptor, Marschalko János.
7. St. Stephen’s Basilica & St Stephen’s Square
8. Boat Trip on Danube – yeah very touristy but must be done!
9. Andrássy Avenue-Opera House and Shops
10. Hungarian National Gallery (Magyar Nemzeti Galéria)
11. Hungarian National Museum (Magyar Nemzeti Múzeum)
12. Music in Budapest- the amount of quality music performed in this city is astounding -and tickets are cheap internationally
13. Béla Bartók Memorial House – house of the famous musician
14. Budapest History Museum
15. Statue Park – Hungary under the Communists was filled with statues of Lenin, Stalin and other”heroes of the revolution”. It did not take long for them to disappear from the city streets in 1989. The question was: “what do do with them all?” Answer: Put them all in a park.
16. Gellert Baths opened in 1918, one of a series of spas across the city fed by 118 natural springs. These spas are so prolific that in 1934, Budapest was awarded the supreme title “Spa City“. Today there are 50 spas and public pools.
17. Heroes’ Square and City Park  -World Heritage Site commemorating Hungarian culture and history
18. Children’s Railway- started by the Communists as the Pioneer Railway, this train line is operated almost entirely by kids
19. Buda Hills and Budapest Chairlift
20. Vaci utca – a pedestrianised shopping area

Related Posts:

Incredible Istanbul

Wild About Berlin

Buffalo, New York, USA

Ever gazed with envy on the European citizen lines at European airports while waiting in line with a non-EU passport?

Now those days could be over for you!

Hungary has billions of pounds of foreign currency debt due within a short period so is needing new sources of cash. The Ruling party in Hungary is proposing giving citizenship to any individual who buys 250 thousand Euros worth of national debt.  The expectation is that purchasers will largely be Chinese.

International reaction from EU partners has been underwhelming!

Related Posts

Malév Malaise- Hungary’s flag carrier demise

Medical Tourism in Hungary

I have joined the world of medical tourism, getting some major dental work done this week in Hungary.  There are few accurate figures estimates on how many people are travelling to countries other than their own for health care procedures but it is thought to be in the millions. The most common procedures are dentistry and cosmetic surgery but eye care is also popular and some people opt to travel overseas for major surgical procedures because of pricing. The top countries for medical tourists are: Brazil, Costa Rica, Hungary, India, Korea, Malaysia, Mexico, Singapore, Taiwan, Thailand and Turkey.

It is estimated that in 2011, between 70 and 80 thousand people travelled to Hungary for dental treatment generating revenues worth $600 million in Hungarian dental surgeries and hotels.

Why have I joined the trend? Because I have found a brilliant dentist with fees 70% less than at home. Plus I have good family support here in Hungary which can be important – particularly if something goes wrong.  I will spare you photos of my teeth in progress but will give you an update on the medical tourism experience.

Your home medical insurance scheme (whether Government or private)  usually won’t cover treatment costs out of your  country. Nor does travel insurance cover such medical care unless you have an emergency while traveling. So breaking a tooth while on a trip, may be covered by your travel insurer but flying to Hungary from your country specifically to have a  broken tooth repaired will generally not be covered -as it is viewed as a pre existing condition. Check with your insurer(s) for details.

I flew here via Istanbul with Turkish airlines- have to say an outstanding experience. Check out my Trip Report Tuesday. After the first stage of my dental work, you will find me in Ireland and England. I get to fly for the first time into London City Airport.

Any other medical tourists want to share their experience?

Useful Links

The Health Tourism Blog

Treatment Abroad.com

Type “Baja” into Google and you get the resort area of Mexico and not this ancient Hungarian city. Baja is approximately 140 Km south of Budapest, sitting at  at the confluence of the Danube and one of its tributaries the Sugovica. The town has been settled since the Iron Age and has had town status for over 300 years. It was a major trading centre then manufacturing centre. It has been ruled over by the Turks, Austrians, Serbs and now Hungarians. Yet until a few months ago, I had never heard of it.

Baja holds an annual Halászlé (Fisherman’s Soup)  Festival which is what drew us to town.

Fisherman’s soup is a bright red spicy paprika-based river fish soup. It is cooked in kettles on open fires by fishermen on the banks of the river.  First, chopped onion is fried with oil until  caramelised. Then, ground paprika is added and the kettle is filled with water. When the water comes to a boil, other spices including black pepper, white wine and tomato juice are added, and finally the fish (carp, catfish, perch or pike) chopped in large pieces. The soup is poured into the plates and eaten with bread.

In Baja, the main square (Szentháromság Tér) was turned into “fish soup central with fires, tables and chairs set up across the square.

In front of the a city’s town hall, a large stage was set up. Traditional and contemporary Hungarian music and dances were performed through the afternoon and evening.  People arrived early and stayed through the night. There were some very, very drunk Hungarians wandering around.

The soup itself was delicious. Being a river fish, the fish itself had quite a strong earthy taste. I am not sure if we had a less spicy version but it did not bring tears to my eyes!

Two weeks ago, I blogged about my High Speed ICE experience. Today’s Trip Report is a little of a contrast. A much more slower trip from Budapest, the capital of Hungary to Baja, a small city south of Budapest.

Booking: 3 out of 10

MAV Start has the most complex train booking system I have ever experienced. The site also froze a few times. It does provide all of the fare and train options on the one screen so you can see which train has the cheapest seats and make up your mind easily about tickets. Eventually, I successfully wrestled a booking reservation. I opted for a first class seat on the first sector of the trip. I paid $14.34 for First Class instead of $11 for second class.

On arrival at Budapest Deli station, I looked for the ticket dispensing machine. The MAV Start website had promised that  ”this will speed up your time in long queues”. I stood in line to ask a human about how to collect my tickets.  The guy who served, me could not print the tickets as they were prepaid. He left his post, however, to ask a security guard to take me out of the ticketing hall to the station concourse where an unassuming unlabelled machine stood. The ticket issuing process is only in Hungarian.

Boarding 8 out of 10

Budapest has three main railway stations. All of them have a corresponding metro station with the same name.

1. Budapest-Déli Pályaudvar (Budapest-Southern Railway Terminal) which I refer to as Delipu has trains to Lake Balaton and Transdnubia. This was where I commenced my journey. It is the most modern and ugliest of Hungary’s railway terminals.
2.  Budapest Keleti Pályaudvar (Budapest Eastern Railway terminal) which I have nicknamed Kelipu. This is one of the most stunning stations in Europe. Most international trains start from here as well as  services to the north-east of Hungary
3. Nyugati Pályaudvar (Budapest-Western Railway Terminal) serves the Danube Bend, the Great Plain and Budapest airport. It is a stunning building  built by the Eiffel Company in 1877 which is rather run down. If you get there, go into the amazingly restored section that houses McDonalds (picture below).

Finding my vágány (Platform) at Delipu was easy. Departures are listed on a yellow timetable poster labelled indul. Arrivals are listed on similar white timetable poster labelled érkezik. Some trains require a compulsory seat reservation. These are indicated on the timetable with an R in a circle or in a box.kebab shop etc)

My First Class carriage was at the end of the train nearest the main concourse.

Mid journey, I had to change trains at Sárbogárd.  This important railway junction allows transfer from the main electrified lines to the non-electrified branch routes. The conductor on the first train calmly reminded me of  the change. Another English speaking tourist was so terrified of the change, he harassed the poor conductor three times, demanding reassurance that the process would be easy. Easy it was. The Budapest express swept into Sárbogárd where our Baja bound train was waiting. Before I realised it, the main line train had vanished and we were on board the branch line train, ready to go.

On Board: 7 out of 10

I was disappointed that I didn’t get to ride in one of MAV-Start’s brand new Red Trains (pictured).

My first train was an electric locomotive hauled train of older carriages. First Class had a 2/2 seat layout with middle aisle. Seats were roomy. Lavatory was acceptable but not brilliant.

The journey from Budapest to  Sárbogárd. was very fast and smooth. The second segment was much slower. I can see why it took me 3 hours 11 minutes to cover 140 kilometres. The poorly maintained track limited speed and the train got slower and slower. At one point, I felt I could have hopped out and run faster than the railcar. We were also lurching so much that I thought we were on the verge of becoming air borne.

The conductor on the Baja line kept me amused. Dressed in an ill fitting unwashed uniform, he wore an expression of extreme resignation. I wondered how many times he had ridden between Baja and Sárbogárd.

Entertainment: 0 out of 10

There was none. No magazines, no audio, no video and no wifi. There was no power available. The view from the windows was very pleasant. I appreciated that both trains had tables I could use for my laptop computer.

Meals-none

There was nothing available to eat on the trains. To keep me going for three hours, I had stocked up on snacks from the shops located under Delipu station. There was a bakery, fruit and grocery shop, kebab shop and more located there.

The Verdict

My rating: Overall 53%

Positives:  View, Price

Negatives: Slow trip, ticketing, no wifi

Would I do it again?   Yes

Related Posts:

Trip Report: Berlin ICE

German Train Delays

Trip Report: Train to Toodyay

With the collapse of Malév  this seems like the only time to post about my last Malev flight in July 2009 – 2.5 years ago from Rome to Budapest.

Booking: 10 out of 10

My ticket was actually booked in conjunction with a Cathay Pacific fare (Malév were part of the One World alliance). I travelled to Budapest from Australia via Hong Kong and Roma. From my visits to Malév ’s website, I found it to be streamlined,  straightforward and effective.

Check In: 7 out of 10

Signposting for the Malév check in at Rome’s Leonardo Da Vinci (Fiumicino) (ROM) was appalling. It was hard to work out of this was in fact a Malev desk. There appeared to be no priority for business passengers at check in. I was flying in Economy class but was Platinum status with qantas which is the top tier One World. The clerk was efficient, fairly pleasant and made sure I got an exit seat on he 737. She told me where the lounge was.

Lounge: 0 out of 10

Despite my status, I was refused entry to the lounge because I was flying in Economy Class. The lounge Malev was using was run by a separate company and the reception did their best bouncer technique to make me feel as small as possible for even asking. What amazed me was that the Check in clerk had referred me to  the Lounge!

Boarding: 7 out of 10

Boarding was initially very efficient. As I reached the check in counter, the agent looked at my boarding pass: “ah Mr Cowling, we were paging you in the lounge, we have upgraded you to business” and handed me a boarding pass for Seat 1A. So pleased with this development, I did not explain that I had been denied entry to the lounge.

We then boarded a bus out to the tarmac.I have mixed feelings about this. I personally love walking on the tarmac  and seeing close up the plane I am flying on (pictured here). I always find the bus trip a jarring annoyance, however. It also is a terrible option if you have a physical disability.

On Board: 8 out of 10

I am not a big fan of the 737 but the interior on this Malév one felt quite airy. Business Class pitch (distance between seats) is 34.4″. As I was in the front row, this was less relevant. Width was 18″.The Business class cabin feels a little cozy as it is arranged in a 2-3 configuration after row 1.  Economy seating is 3-3 with a pitch of 30.5″ and seat width of 16.9″

By contrast low cost competitor, Wizz on the same route offers 28″  to 30″ seat pitch. Qantas on a short haul 737 offers 35″ pitch and 21.1″ width in business and 30″ and 17″ in economy.

The crew’s attitude is hard to describe. They were definitely smiling, polite and very happy to serve but I did not feel they were overly warm
I am not being critical here, because their efforts contributed to this being one of the most relaxed flights I have ever had as well as the amazing entertainment (see below). There was no special welcome for me as a platinum flyer. Qantas and Cathay Pacific do make a point of having the cabin manager visit you. American, Lan, have never done it and British Airways has sometimes done it. A small inconsistency across the One World network.

Safety: 10 out of 10

I liked the cartoon-like human figures used in their safety video.  I like the very authoritative “Please locate the exit nearest to you now” Hear the emphasis on now! The music used is the same as in a couple of their advertisements. Crew appeared to take safety very carefully and gave a reassuring perception that they knew what they were doing. That always scores high marks from me. Cabin crew chatting through a safety briefing really angers me! This crew didn’t.  

Meals: 8 out of 10

We were served a cold but delicious meal: roll and chocolate dessert. There was a reasonable drink selection.

Entertainment: 0 out of 10

There was no entertainment provided by Malév hence my rating but…

The flight itself provided huge entertainment in the landscape below. It was an incredibly clear day and we flew over Italy crossing a sparkling Adriatic sea and then across Croatia into Hungary. We flew over Lake Balaton in Hungary, which I would be swimming in the very next day! It was one of the smoothest flights I have ever had with not a hint of turbulence. 

The Verdict:

My rating: 77% (4 out of 5)

Positives:   Cabin crew, Meal

Negatives: Check in and lounge at Rome airport, boarding at Rome,  Non existent on board entertainment

Would I fly them again?  Yes,  but I won’t ever get that chance.

My last Trip Report: January 31: Etihad Evaluated

In doing some research about failed Hungarian carrier Malév, I came across this amazing video.  On August 20, 2006 a Malév 737 followed by a Sky Europe plane flew at a low altitude over Budapest, Hungary. This ten minute video has some stunning view of this beautiful city. The two planes then flew side by side.

I assume it was done for the sixtieth anniversay of the founding of the successor to Malév.

Ironically, both airlines are gone now.

After several horror years of airline failures globally, 2011 was a relatively quiet year with only a small number of airline names vanishing.

Stranded Passengers in Budapest: http://www.euronews.net/

2012 has already been busy, however,  with the collapse of Spanair and Cirrus in January.  This week I was sad to see the collapse of Malév, the Hungarian flag carrier. The airline has been on the edge of collapse for years. Shutdown was triggered by a European Commission order to repay  €300 million in “illegal” government subsidies and forced when  Tel Aviv and Dublin airports grounded two of Malév’s jets.

On closure day, 30 000 passengers were stranded. The airline had 2,600 employees and transported 9.2 million passengers last year. The collapse has wider impacts for Budapest airport, the Hungarian government budget, tourism in Hungary and the Hungarian economy.

Malév is an airline I have had some affection for and I am sad to see them go. I have long followed their progress (or lack of it more recently). Other airlines I have been sad about going include Laker (1982), Pan Am (1991), Ansett Australia (2001),  Sabena (Belgium) (2001), Independence Air in USA (2005), Origin  Pacific in New Zealand (2006) and  Slovakia’s SkyEurope (2009).

Yesterday, the Hungarian free Metropol newspaper had what is probably the last ever advertisement by Malév:  “We Thank You! We hereby thank all Malév passengers who chose to fly with the national airline in the last 66 years, for flying with us. Much love, The Employees of Malév The last Malév ad was published from money collected by the employees of Malév with the support of this newspaper.”

Who was this airline?

1946 -1988: Blood, planes and speed

The carrier started as the joint Hungarian- Soviet carrier: Maszovlet in 1946. In 1950 when Budapest’s Ferihegy Airport  (now Liszt Ferenc International Airport) opened, the Carrier looked after the airport and also operated Hungary’s air traffic control.

On 26th of November, 1956 Malév Hungarian Airlines (Magyar Légiközlekedési Vállalat) began independent operations as the legal successor of Maszovlet. I am not sure if this separation was linked to the Hungarian uprising that started on the 23rd of October and was brutally crushed on 10th of November 1956?. There was a famous incident at the 1956 Melbourne Olympics in the semifinal  water polo match between Hungary and the USSR which turned into a violent battle in the water.  The match that what would later be known as the “Blood in the Water match.”-It is the subject of a documentary: Freedom’s Fury). I am curious that two weeks after the uprising containment, the airlines separated.

At that time Malév had a fleet of 15 aircraft (mostly 21-seater Lisunov Li-2s – the Soviet build version of the DC3). It  had 18 domestic routes mostly between Soviet bloc countries. In its first year they carried 103,356 passengers and Malév  replaced the Li-2s with much faster Ilyushin Il-14s.

In 1960, Malév was the first Soviet bloc airline to fly the Ilyushin Il-18 (pictured here in a museum). This plane gave  Malev the ability to fly non-stop to the Middle East and North Africa.

In 1969, Malév shut down all of  its domestic flights. It was now flying to 33 cities in 28 countries. 68-seat Tupolev Tu-134 jet passenger aircraft began operations.

1974 saw the arrival of 143-seater Tu-154 planes to replace the Ilyushin-18s from passenger service. Here is a Malev 1980s  advertisment featuring a family flying on a TU 1-154. Spot the 80s hairstyles! 
Malév became a full member of the International Air Transport Association (IATA) in 1984.

 1988- 2007: a new world

With the collapse of Soviet communism, Malév was one of the first of the Eastern European airlines to start introducing non Soviet aircraft with its first Boeing 737 in 1988. The entire Soviet built fleet was replaced by 1999.

Malév Photo by Kok Vermeulen (CC-BY).

At the same time,  Hungarian graphic artist László Zsótér designed a new logo- one which survived the transition from communism to this week’s collapse. A rarity in the airline world to have an airline logo last over two decades!

The stylised  ”M” symbol was usually depicted in the three colours of the Hungarian flag – red, white and green – although it sometimes appeared in a single colour scheme.

At this time, Malév was carrying over a million passengers a year to 40 cities in 30 countries.  Malév was ranked among the top 10 companies in Hungary by annual revenues.

In the 1990s, Malév issued shares which were owned by the government. There was a brief part ownership by Alitalia

2007-2012: hurtling toward the inevitable

The airline was sold to a Russian company in 2007 after a desperate search for an owner. By this time,  the airline was viewed as a massive financial burden on the state.  At privatisation, the Hungarian government absorbed a 2003 loan. Malév also received shareholder “loans” which were all converted to shares and a tax deferral. All of these transactions were to raise the fury of low cost competitor Wizz air and the interest of the European Commission and lead to the inevitable demand to repay the money.

Malév under their new ownership  dropped loss making flights particularly transatlantic services and attempted to use Budapest as a hub connecting all parts of European plus the Middle East. Major cost saving initiatives began. Also in 2007, Malév  joined One World alliance.

In February, 2009, Malév had to pay wages in two parts because it could not afford to pay them in full.

Malév was re nationalised in 2010 on condition it become profitable by 2012 (which it didn’t). The Hungarian government has said a new Malév could rise if private “investors were prepared to operate it profitably and risk their own cash.” I am very pessimistic, we will ever see Malév again.

Competitor Changes from Budapest:

• Aegean Airlines will launch services to Athens
• Air Berlin started a daily service to Frankfurt
• Air France – will add larger planes to their 20 weekly Paris flights
• British Airways (One World carrier)- will also add larger planes on their London flights
• KLM – larger planes to Amsterdam
• Lufthansa has new services to Berlin and Hamburg
  
• Norwegian will put larger planes on Budapest routes.
• the biggest change comes from Ryanair , who announced seven hours after the collapse that their new Budapest base on February 17 will provide service to  31 European cities instead of the intended five. I believe, the scale of this expansion will make it almost impossible for any new Malev to appear
• Smartwings (Czech low-cost carrier) will launch services to  Athens, Barcelona, Cyprus and Paris
• Wizz Air (Hungarian low-cost carrier ) will increase weekly flights from 129 to 167 adding ten new destinations. It also announced plans for Tel Aviv and Moscow, two destinations previously flown to by Malev

Impact on Budapest airport

The collapse will rob Liszt Ferenc International Airport of 1.5 million passengers a year- 40 per cent of airport revenue. Although these figures may be changed with the massive Ryanair expansions. Privatised in 2007, the airport is owned by five investors. Hungary’s Development Ministry said that the Hungarian state has effectively a full guarantee for any losses in airport revenue. The airport bill could be  as much as $3 billion.

Impact on Hungary

 The International Monetary Fund, has said Malév’s demise poses new threats to an already struggling Hungarian economy. Malév’s collapse comes as Nokia scales back its Hungarian manufacturing operations. Combined 5,000 jobs will go. There are tourism implications in the short and medium term.

The two big questions of course are: What could have been done differently?   and Who is Next? I predict ČSA - České státní aerolinie (Czech Airlines)

Vale Malév

There are  a few tribute videos for Malév. This one is by Airlineguy29.