Malev - fleet repossessed?

[Ed5995]

I was looking at www.flightradar24 last night and watched 12 Malev 737s between 8-8.30pm fly in series across the UK to Shannon, Ireland. Returned to or repossessed by the lease company? Anyone any information on this?

Edited by Ed5995 on Saturday 4th February 08:46

[Pothole]

they're bust...all flights grounded over fears of repo, so could well have been called a holding airport or sent there to save being repo'd

http://www.irishtimes.com/newspaper/finance/2012/0...

Seems to be basic sums being missed in the article and, if true, by the Hungarian government.

"Malev, whose debts are about €200 million."

"...could also spell trouble for Budapest airport, which relied on Malev for 40 per cent of its turnover.

Local media reported that the government may also have to pay €1.5 billion in compensation to the operator of the airport according to a privatisation contract signed in 2005, under which the state agreed to pay a penalty if Malev went bankrupt."

€200m or €1.5b? Except they're not suddenly going to start being profitable again, are they?

[anonymous-user]

Spanair went under last month too.

[MOTORVATOR]

Pothole said:

they're bust...all flights grounded over fears of repo, so could well have been called a holding airport or sent there to save being repo'd

http://www.irishtimes.com/newspaper/finance/2012/0...

Seems to be basic sums being missed in the article and, if true, by the Hungarian government.

"Malev, whose debts are about €200 million."

"...could also spell trouble for Budapest airport, which relied on Malev for 40 per cent of its turnover.

Local media reported that the government may also have to pay €1.5 billion in compensation to the operator of the airport according to a privatisation contract signed in 2005, under which the state agreed to pay a penalty if Malev went bankrupt."

€200m or €1.5b? Except they're not suddenly going to start being profitable again, are they?

Hungarian government can't give them a penny to keep going, in fact it is the EU decision that previous finance had been illegal and has to be repaid that have finished them.

The €1.5b won't be that amount either, that's a left over term from the original sale to BAA.

Be interesting to see what Hungary make of the EU saying what you can and can't do with effectively a state owned company. The decision that they have to repay €130m seems a bit pointless if as a result they are insolvent.

[Hooli]

MOTORVATOR said:

Be interesting to see what Hungary make of the EU saying what you can and can't do with effectively a state owned company. The decision that they have to repay €130m seems a bit pointless if as a result they are insolvent.

I know what they should do, it's same as we should do. Tell the EU to feck off & let the government run the country etc.

[Eric Mc]

Hooli said:

MOTORVATOR said:

Be interesting to see what Hungary make of the EU saying what you can and can't do with effectively a state owned company. The decision that they have to repay €130m seems a bit pointless if as a result they are insolvent.

I know what they should do, it's same as we should do. Tell the EU to feck off & let the government run the country etc.

Can't have it both ways. You join the club for the benefits - you must take the downside too.

State aid for businesses is now illegal in the EU (although the rules have been bent to virtual breaking point by some countries - notably France).

[Simpo Two]

It wil be interesting to see the countries that joined up for the free money get screwed by the Brusselcrats. Except they'll probably have the balls to leave before disaster. 'Thanks for the money, bye'.

[Hooli]

Eric Mc said:

Can't have it both ways. You join the club for the benefits - you must take the downside too.

We've never got an benefits that I've seen. We pay in billions, get a few million of our own money handed back for roads in the Highlands & claim it's a good deal.

[essayer]

Ed5995 said:

I was looking at www.flightradar24 last night and watched 12 Malev 737s between 8-8.30pm fly in series across the UK to Shannon, Ireland. Returned to or repossessed by the lease company? Anyone any information on this?

Edited by Ed5995 on Saturday 4th February 08:46

Malév leased the aircraft from ILFC, so presumably as soon as they ceased operations and breached whatever lease clause, ILFC took their planes back

http://www.irishtimes.com/newspaper/finance/2012/0...

[Eric Mc]

Hooli said:

Eric Mc said:

Can't have it both ways. You join the club for the benefits - you must take the downside too.

We've never got an benefits that I've seen. We pay in billions, get a few million of our own money handed back for roads in the Highlands & claim it's a good deal.

Fairly predictable response.

This debate is about Hungary, not the UK.

[anonymous-user]

Why haven't Alitalia been stung by the same euro laws regarding governments loaning money to struggling companies.

[MOTORVATOR]

Eric Mc said:

Can't have it both ways. You join the club for the benefits - you must take the downside too.

State aid for businesses is now illegal in the EU (although the rules have been bent to virtual breaking point by some countries - notably France).

Understand the principles of anti-competetiveness Eric but of course this just shows up that once state owned you can pretty well forget about any form of rescue plan.

EU decision that they have to pay back more than a years turnover followed by a loss of confidence of creditors and bang within a month it's gone.

Taking aside rules and regs I'm not sure that is supportable from a common sense point of view.

[Eric Mc]

el stovey said:

Why haven't Alitalia been stung by the same euro laws regarding governments loaning money to struggling companies.

Good question.

[AlexiusG55]

el stovey said:

Why haven't Alitalia been stung by the same euro laws regarding governments loaning money to struggling companies.

It's the way Europe has always worked. The Germans make the rules, the British grumble about them, and the French (and Italians) ignore them.

[Simpo Two]

If Europe was any good we wouldn't grumble about it. We grumble because we were suckered in and are too lilly-livered to quit.


Sorry, back to the thread.

[Ed5995]

http://www.irishtimes.com/newspaper/finance/2012/0...

seems Malev reached agreement with ILFC to 'position' the aircraft at Shannon for a period in case circumstances allow malev to recommence operations. see also

http://www.planespotters.net/Airline/Malev-Hungari...

A sad end to a once proud airline.

Edited by Ed5995 on Saturday 4th February 17:37

[onyx39]

Ed5995 said:

http://www.irishtimes.com/newspaper/finance/2012/0...

seems Malev reached agreement with ILFC to 'position' the aircraft at Shannon for a period in case circumstances allow malev to recommence operations. see also

http://www.planespotters.net/Airline/Malev-Hungari...

A sad end to a once proud airline.

Edited by Ed5995 on Saturday 4th February 17:37

Article states that the airport will earn thousands of Euros in parking fee's are they confident of getting paid then, or will ILFC be picking up the tab?

[MOTORVATOR]

onyx39 said:

Article states that the airport will earn thousands of Euros in parking fee's are they confident of getting paid then, or will ILFC be picking up the tab?

Them being parked there seems to guarantee you get paid before they are allowed to leave.

[Eric Mc]

You would be amazed at how many aircraft end up being abandoned at airports due to non-payment of parking charges and ramp fees.

ILFC are a reputable operation so I'm sure this will not happen in this case.

[Chrisgr31]

And I am told they no longer use the snow clearing equipment to prevent them leaving!