"Hungary's national airline Malév has raised its capital by EUR 18 million. The company replaced its chief executive Llyod Paxton last Friday.Paxton came over from British Airways and was appointed as Malév's new CEO, replacing János Gönci, on 12 July this year. He was replaced by Deputy Chairman Péter Leonov .
Paxton's primary goal was to cut costs and boost revenues, and Leonov believes these efforts could allow Malév to turn profitable already in 2008, Napi Gazdaság said on Monday.
The cost-cutting scheme, which comprises several hundred steps, is to save the airline HUF 12.5 bn a year, the business daily added. Malév is aiming to enhance its efficiency and improve flight usage numbers. From next summer, the company is expected to open its doors wider for Russia tourists and hopes to fly 200,000-300,000 new passengers.
Malév reported a 5% yr/yr increase in passenger numbers and a 7% increase in revenues for the first half of the 2007. Flight usage improved by 1.1% yr/yr.
With regard to the capital increase Leonov said that apart from a HUF 5 billion capital increase effectuated at the privatisation of Malév AirBridge had also pledged to inject some EUR 30 m (HUF 7.5 bn) capital into the company and the EUR 18 m is one part of that."
Source:
Portfolio Online Financial Journal
17.09.2007