Hungarian airline owed €30m to bank
Hungarian carrier Malev Airlines has been taken over by a Russian bank.
The state-owned Vneshekonombank has taken control of the struggling airline which owed it €30m from a loan taken out last autumn.
Viktor Zubkov, Russia's first deputy prime minister, speaking at a press conference in Budapest, the Hungarian capital, blamed the takeover on "previous owner's weak management and the global financial crisis."
The Hungarian government privatised its national carrier in February 2007, selling its 99.95% stake in debt-ridden carrier for 200m forint (€793,650)
The buyers were Airbridge, a Hungarian consortium backed by Russia's KrasAir.
KrasAir, a state-owned Russian carrier, went bankrupt last year.
Malev's new owners said that Airbridge, a consortium of Russian investor Boris Abramovich of the now defunct AirUnion Alliance and two Hungarians, had failed to meet certain conditions of the sale.
Janos Veres, Hungary's finance minister, told the press conference: "The steps taken since the privatisation have not been adequate to ensure the future of the airline."
The new owners said that Russian's state-owned national carrier Aeroflot would now become Malev's strategic partner.
Mr Zubkov said Malev, which joined the oneworld alliance last year, would now have "good prospects."
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