newstodate.aero
Dec 06, 2011 (newstodate): Hungary's Malev is prepared for the worst as EU continues it probe into what may be illegal state aid to the carrier.
In December 2010, the EU Commission opened a formal investigation under EU state aid rules to examine a number of support measures, including several capital injections and shareholder loans, that the Hungarian authorities granted to Malev in the context of its privatisation and subsequent renationalisation.
The country's Development Minister now admits that this was most probably the case, and the final outcome of the EU investigation will be published in 2012 probably leading to claims against the Hungarian state to pay back the aid rendered.
When the case has been closed, Hungary will again seek foreign investors to take over the shares in the carrier.
Malev was re-nationalized in autumn 2010 after Russian ownership since January 2009 by the state-owned investment and development bank, Vnesheconombank that took over the 99.95 percent stake held by KrasAir that acquired the airline through a tender closed in February, 2007.
The EU Commission opened the case over doubts that Malev would have been able to obtain financing from the market similar to the terms conceded by the Hungarian authorities.
In December 2010, the EU Commission opened a formal investigation under EU state aid rules to examine a number of support measures, including several capital injections and shareholder loans, that the Hungarian authorities granted to Malev in the context of its privatisation and subsequent renationalisation.
The country's Development Minister now admits that this was most probably the case, and the final outcome of the EU investigation will be published in 2012 probably leading to claims against the Hungarian state to pay back the aid rendered.
When the case has been closed, Hungary will again seek foreign investors to take over the shares in the carrier.
Malev was re-nationalized in autumn 2010 after Russian ownership since January 2009 by the state-owned investment and development bank, Vnesheconombank that took over the 99.95 percent stake held by KrasAir that acquired the airline through a tender closed in February, 2007.
The EU Commission opened the case over doubts that Malev would have been able to obtain financing from the market similar to the terms conceded by the Hungarian authorities.