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. Last Updated: 07/27/2016

Hungary Picks KrasAir to Buy Malev

Hungary chose Airbridge, a local investment vehicle for KrasAir owner Boris Abramovich, to buy state airline Malev in its seventh attempt to sell the unprofitable carrier.

The government's asset-sales agency, which last month ended talks with competing bidder Lithuanian airline FlyLAL Group, picked AirBridge five months after opening its latest bid for Malev, it said Thursday, without elaborating on the purchase price or sale details.

Hungary invited offers for Malev after failing to agree with KrasAir in August 2005 amid criticism from labor unions and politicians that it was being sold for too little. The government has spent $83 million propping up the airline in the past six years, yet it hasn't posted a profit since the 1990s.

The government earlier ended talks with Ofer Hava, an entrepreneur in a group with former Aer Lingus Chairman Tom Mulcahy, and ruled out Sky Alliance, a group of former Malev employees.