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"Central and Eastern Europe is a region where oneworld would like to broaden its presence," McCulloch said. "Malev will be our first member in the CEE region, a result of customer demand towards the alliance."
The formal process of joining the alliance is expected to be completed within 15 months, after Malev signs bilateral agreements with all other airlines in the alliance and members interconnect their IT systems As a member of the alliance, Malev will have the opportunity to indirectly fly passengers to 650 airports and all big cities in the world, using electronic ticketing within the entire network.
To achieve membership, Malev will need to be profit-making like all other members of the alliance. Malev is planning to break even by next year and turn profitable in 2007, said CEO Janos Gonczi. Malev plans to pull this off by increasing its load factor by 8–8.5%.
Malev signed a declaration of intent to join oneworld in May 2005. Oneworld's members serve a network of 650 destinations in 134 countries, and carried 230 million passengers in 2004. The alliance recorded revenues of USD 60 bln last year, and made a net profit of more than USD 1.3 bln.
Three existing oneworld partners currently serve Malev's Budapest base - Aer Lingus, British Airways and Finnair. Malev flies to established oneworld hubs Helsinki, London Heathrow, Madrid, New York, Dublin and Cork, while Malev already has a code-sharing agreement with Finnair.
