Malév plans for improved results in 2009 despite crisis.
Despite the global economic recession Malév is planning for an approximately HUF 1.5 billion improvement in its operating result this year compared to the base year, and it intends to retain its total passengers figure at over 3 million as well as to continue the fleet restructuring programme.
On 26 May the Malév Board of Directors approved the 2009 budget drawn up by the airline management. The budget details the objectives and means whereby the airline will be able to improve its 2009 operating results by some HUF 1.5 billion even in the face of the downturn. Chief Executive Officer Martin Gauss briefed members of the press about details of the plan, stressing,
"We are going to make changes to the Malév fleet, schedule, commercial activities and headcount in the second half of the year. Together, these will enable us to improve our results this year against 2008; furthermore, they represent the preconditions for profitability in the long term."
With regard to the fleet, the CEO said that Malév will continue its fleet restructuring programme, including grounding five F70s and returning them to the leasing corporation. This means that by the end of the year the fleet will comprise just two types: Boeing 737 Next-Generations representing the core of the fleet and Q400s flying regional services. Currently Malév operates three of the latter aircraft, and an additional unit arrives this month. The entry into service of the fourth Q400 closes stage one of the regional fleet upgrade involving the addition of four pre-owned Q400 turboprops to the Malév fleet. The airline management announced the regional fleet restructuring programme at the Farnborough Air Show, one of the industry's most important exhibitions and meeting places, last summer. The simplified fleet structure significantly reduces maintenance and operational costs, the benefits of which will become evident in 2010.
Malév is carrying out further changes to the schedule besides the addition of brand-new destinations launched this summer - St. Petersburg, Amman, Iasi - and increased flight frequencies on nine routes. It is suspending five flights - Venice, Podgorica, Ljubljana, Dublin and Geneva - during the winter and reducing frequencies on several routes. Closure of these routes is necessary because of the projected drop in traffic demand during the off season. In 2009, even with the reduced number of flights (51,779) the airline will carry approximately 3.1 million passengers and it is targeting a load factor similar to that of last year (65.6%).
Of equal strategic importance is boosting commercial activities because in an environment where travel demand is falling the only way of retaining the established customer base and stimulating new traffic potential is by using enhanced means. Malév plans to increase market share through powerful marketing and sales; the aim is also to double the company's own online ticket sales. In addition, the airline is further improving cooperation with travel agencies and other tour operators as well as with corporate clients. Malév is giving even greater backing to commercial activities by doubling the marketing budget, running regular online campaigns, using Search Engine Marketing (which directs more search engines to Malév's offers), a new online booking system, a better newsletter service and by stressing www.malev.hu in all marketing communication material.
In addition to a new approach on the commercial side and schedule and fleet restructuring, the company is also forced to make a further reduction in the workforce, and this will affect virtually all areas of the company. The details of this are being negotiated with the unions, and only after talks are concluded can precise numbers be given.
A new cost-cutting programme spanning the entire company has also started. Its primary objective is to achieve a 5-8% saving in operational activities.
The Malév budget includes the transfer to a common headquarters office, where not only staff from Lurdy House will be located but also everyone who does work at the airport offices. The relocation is expected in 2010.
The management calculates that implementation of measures set down in the budget will allow the company to further improve its operating result. And as Malév Chairman Anatoly Ballo announced after the meeting of the Board of Directors last Tuesday, the Board requested the management to prepare a three-year business plan allowing Malév, as the Hungarian national carrier, to become profitable.
(Malev.com)
Riassunto rotte cancellate con la W09/10 :
- Venezia
- Lubiana
- Podgorica
- Ginevra
- Dublino
Estromessi dalla flotta :
- 5x F70
- 3x 737s
Despite the global economic recession Malév is planning for an approximately HUF 1.5 billion improvement in its operating result this year compared to the base year, and it intends to retain its total passengers figure at over 3 million as well as to continue the fleet restructuring programme.
On 26 May the Malév Board of Directors approved the 2009 budget drawn up by the airline management. The budget details the objectives and means whereby the airline will be able to improve its 2009 operating results by some HUF 1.5 billion even in the face of the downturn. Chief Executive Officer Martin Gauss briefed members of the press about details of the plan, stressing,
"We are going to make changes to the Malév fleet, schedule, commercial activities and headcount in the second half of the year. Together, these will enable us to improve our results this year against 2008; furthermore, they represent the preconditions for profitability in the long term."
With regard to the fleet, the CEO said that Malév will continue its fleet restructuring programme, including grounding five F70s and returning them to the leasing corporation. This means that by the end of the year the fleet will comprise just two types: Boeing 737 Next-Generations representing the core of the fleet and Q400s flying regional services. Currently Malév operates three of the latter aircraft, and an additional unit arrives this month. The entry into service of the fourth Q400 closes stage one of the regional fleet upgrade involving the addition of four pre-owned Q400 turboprops to the Malév fleet. The airline management announced the regional fleet restructuring programme at the Farnborough Air Show, one of the industry's most important exhibitions and meeting places, last summer. The simplified fleet structure significantly reduces maintenance and operational costs, the benefits of which will become evident in 2010.
Malév is carrying out further changes to the schedule besides the addition of brand-new destinations launched this summer - St. Petersburg, Amman, Iasi - and increased flight frequencies on nine routes. It is suspending five flights - Venice, Podgorica, Ljubljana, Dublin and Geneva - during the winter and reducing frequencies on several routes. Closure of these routes is necessary because of the projected drop in traffic demand during the off season. In 2009, even with the reduced number of flights (51,779) the airline will carry approximately 3.1 million passengers and it is targeting a load factor similar to that of last year (65.6%).
Of equal strategic importance is boosting commercial activities because in an environment where travel demand is falling the only way of retaining the established customer base and stimulating new traffic potential is by using enhanced means. Malév plans to increase market share through powerful marketing and sales; the aim is also to double the company's own online ticket sales. In addition, the airline is further improving cooperation with travel agencies and other tour operators as well as with corporate clients. Malév is giving even greater backing to commercial activities by doubling the marketing budget, running regular online campaigns, using Search Engine Marketing (which directs more search engines to Malév's offers), a new online booking system, a better newsletter service and by stressing www.malev.hu in all marketing communication material.
In addition to a new approach on the commercial side and schedule and fleet restructuring, the company is also forced to make a further reduction in the workforce, and this will affect virtually all areas of the company. The details of this are being negotiated with the unions, and only after talks are concluded can precise numbers be given.
A new cost-cutting programme spanning the entire company has also started. Its primary objective is to achieve a 5-8% saving in operational activities.
The Malév budget includes the transfer to a common headquarters office, where not only staff from Lurdy House will be located but also everyone who does work at the airport offices. The relocation is expected in 2010.
The management calculates that implementation of measures set down in the budget will allow the company to further improve its operating result. And as Malév Chairman Anatoly Ballo announced after the meeting of the Board of Directors last Tuesday, the Board requested the management to prepare a three-year business plan allowing Malév, as the Hungarian national carrier, to become profitable.
(Malev.com)
Riassunto rotte cancellate con la W09/10 :
- Venezia
- Lubiana
- Podgorica
- Ginevra
- Dublino
Estromessi dalla flotta :
- 5x F70
- 3x 737s
