Ex-communist Europe
Eastern Europe's airlines
Flagging carriers out east
Feb 12th 2012, 11:41 by The Economist online
THE grounding of Malev, Hungary’s national carrier, shows once again how Eastern European countries are struggling to fly their flags around the world. With Malev gone, Hungary is now expected to follow Slovakia in switching to a predominantly low-cost carrier (LCC) market. Prior to Malev's bankruptcy, LCCs accounted for just 24% of capacity in Hungary, compared with more than 70% for its neighbour to the north. That figure shot up to 40% overnight, and with Ryanair circling covetously above will only rise further. But there are few positive signs for Eastern Europe's older airlines. This post from our travel blog, Gulliver, explains why.
Eastern approaches deals with the economic, political, security and cultural aspects of the eastern half of the European continent. It incorporates the long-running "Europe.view" weekly column. The blog is named after the wartime memoirs of the British soldier Sir Fitzroy Maclean.
Advertisement
- Analects | China
- Americas view | The Americas
- Babbage | Science and technology
- Bagehot's notebook | British politics
- Banyan | Asia
- Baobab | Africa
- Blighty | Britain
- Buttonwood's notebook | Financial markets
- Charlemagne's notebook | European politics
- Clausewitz | Defence, security and diplomacy
- Democracy in America | American politics
- Eastern approaches | Ex-communist Europe
- Elysée | France’s presidential election
- Free exchange | Economics
- Game theory | Sports
- Graphic detail | Charts, maps and infographics
- Gulliver | Business travel
- Johnson | Language
- Leviathan | Public policy
- Lexington's notebook | American politics
- Newsbook | News analysis
- Prospero | Books, arts and culture
- Schumpeter | Business and management
Most commented
- The euro in crisis: Groping towards Grexit
- Gay marriage: North Carolina begs the question too
- The euro crisis: The Greek run
- The euro crisis: Europe’s Achilles heel
- Renouncing citizenship: Did Eduardo Saverin do anything wrong?
- Should gay marriage be legal in America?
- Greek politics: Slouching towards the drachma
- Mitt Romney at Liberty University: An unnecessary speech
- Cartoon politics: Julia's world
- Brazil’s economy: A bull diminished
Over the past five days
Most recommended
- Lexington: Peter David
- The euro crisis: Europe’s Achilles heel
- J.P. Morgan’s trading mistakes: A billion here, a billion there
- Gay marriage: North Carolina begs the question too
- The future of customer support: Outsourcing is so last year
- Renouncing citizenship: Did Eduardo Saverin do anything wrong?
- Greece fails to form a government: Adrift
- The euro in crisis: Groping towards Grexit
- Suppressing dissent: The emperor does know
- Euro-zone contagion: If Greece goes...
Over the past seven days
Advertisement
Readers' comments
The Economist welcomes your views. Please stay on topic and be respectful of other readers. Review our comments policy.
Sort:
It is really hard to compete with a company like Ryanair in Price and market dominance, especially now that mood in Europe is focused on saving money... skmoda.sk
Despite much use of "creative accounting" the small, generally grossly overstaffed and inefficient State owned airlines of central-Eatsern Europe are all near bankrupcy. That includes LOT (which employs twice the staf of Eastjet with less than a third of its fleet) Bulgar Air, Tarom, Baltic, CSA etc etc. They have been maintained over the past 20 years by heavy State subsidies, all in the name of "flag waving". It reminds me of 3rd world countries. Fortunately EU controls on State subsidies are putting the necessary pressure to rationalise, modernise or liquidate these ex-communist dinosaurs.
The end of a "venerable" airline.
thank god guy who bancrupted this company will now lead AirBaltic :D
Orban Viktór? Or maybe Matolcsy, Felegyhi?