Malev is at a crossroads and according to new CEO Lloyd Paxton, the former Hungarian state airline has arrived ”at the moment of truth.”
The privatised carrier, a long time loss maker, needs to be set on a new path according to Paxton, speaking at a press briefing to promote not Malev but the city of Budapest, yesterday (Monday 20 August), a national holiday in Hungary. ”We have to slim down and be more efficient,” he said.
Paxton joined Malev just six weeks ago from Air Astana, where he is credited for introducing and making very profitable the joint government and BAE Systems owned carrier.
Malev currently has 30 aircraft. Paxton would like to reduce this to 22 but not necessarily by cutting routes ” although a few may go ” but by making the carrier more efficient and eliminating bad practices built up over the years.
The airline has already agreed to the disposal of one of its three Boeing 767s, but will continue its long haul flights to New York, Toronto and Bangkok, with the same frequencies. Out too are likely to be the four-aircraft Bombardier CRJ fleet, although Paxton believes he has a customer for them.
Malev”s biggest step forward in recent times was the joining of oneworld. Although this happened before Paxton”s arrival, he said he was delighted to be part of the now ten airline worldwide alliance.
Paxton spent over 30 years with British Airways (BA) and still has strong connections with his former employer. The briefing also included oneworld V-P commercial, Nic Ferri, and V-P public affairs, Mike Blunt, a one time member of BA”s PR team.
Also in attendance was American Airlines director multinational sales for Europe, Middle East and Africa, Arthar Khan. Malev already has a code share with American but ties are likely to be strengthened in the coming months.