Malev Pins Revival Hopes on Russian Bank

Hungary's Malev airlines that stopped flying last week expects a USD 120 M stabilizing credit from the Russian Vnesheconombank (Bank for Foreign Economic Activity).

If the Russian bank agrees to provide the credit, Malev could resume its flights from Budapest, ITAR-TASS informs. Vnesheconombank is currently a minority shareholder in the airline, owning 5% of its shares.

ITAR-TASS has cited sources stating that there have been difficulties in the negotiation process, with meetings expected to be held in Moscow and Budapest next week.

A Budapest court recently placed Malev under the control of a bankruptcy trustee, saying the airline could make payments only as essential to continue offering service.

Malev became the second European carrier to halt flights in a week. Spanair, based in Barcelona, collapsed on January 27, stranding 23,000 passengers.

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