Lithuanian Airline to expand in East Europe after Hungarian bid

FlyLAL, the Lithuanian carrier sold by the government in 2005, is looking to further expand in eastern Europe following its bid worth €120 million ($156 million) for Hungary's national airline Malév Zrt.
Owners of Vilnius-based FlyLAL are seeking acquisition targets or potential partners in Russia, Ukraine and the Balkans to complete a network serving the region within three to seven years, said Dávid Keresztes, the company's Hungarian representative. Hungary's government will pick either FlyLAL or a bid by OAO KrasAir owner Boris Abramovich for Malév by the end of the month in its seventh attempt to sell the company since the end of communism. Hungary has spent more than Ft 16 billion ($82 million) propping up Malév as the unprofitable company struggles with debt and competition from discount carriers.
They are in talks with other financial investors to join the Malév bid, Keresztes said. Malév would serve as the group's hub for long-haul flights toward India, the Far East and North America. FlyLAL is counting on a 261 million-euro development plan by Budapest Airport owner Hochtief AG to provide infrastructure for its flights and increasing traffic, according to Keresztes.
23/01/07 Budapest Business Journal, Hungary

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