Malév grounding: lay-offs at Budapest Airport
Budapest Airport has officially announced that the process of mass redundancy has been started at the airport in connection with the bankruptcy of Malév Hungarian Airlines. Budapest Airport has notified the relevant labor authorities and has called the unions to start consultations about the lay-offs.
Budapest Airport has no other options left after the bankruptcy of Malév Hungarian Airlines than to adjust its operations and company structure to the new situation. Budapest Airport has lost 1.5 millions of Malév transfer passengers out of the 3,2 million carried last year by the Hungarian national airline. Up till now there is seat capacity offered for approximately 1 million passengers to replace Malév on some major routes however these are predominantly in the low-cost sector.
With the loss of Malév not only passenger revenues were lost for the airport, but a series of incomes generated by leased property, maintenance and other areas. Under the circumstances among many other steps like freezing all planned investments and development projects for 2012 worth over 60 million Euros Budapest Airport has announced the redundancy plans for 250 employees of its present staff. The estimated 20-25 % staff-cut is accompanied by a relevant outplacement program.