In a spectacular move, Hungary Airlines has signed a cooperation agreement with US aircraft manufacturer Boeing to purchase 100 Boeing 737 MAX aircraft. The airline, which was only founded in 2021 and is majority owned by Chinese entrepreneur Wu Jiang, aims to establish Budapest Airport as a strategic hub for passenger traffic between Central and Eastern Europe and China.
The order, which is seen as a significant expansion of the fleet, is part of a comprehensive growth plan of the airline, which has its origins in the air cargo sector. The company plans to introduce passenger flights while expanding its cargo operations. It is considering integrating Airbus A330F freighters currently operated by Wizz Air into its fleet. The first delivery of the 737 MAX is expected to take place by the end of 2025, underlining Hungary Airlines' ambitious expansion goals.
A strategic hub between East and West
The choice of Budapest as the main base for Hungary Airlines is no coincidence. Hungary's geographical location, combined with the airport's infrastructure and the growing number of direct flights to China, makes Budapest an ideal hub. Budapest Airport already has regular connections to Chinese metropolises such as Beijing, Shanghai and Chongqing, strengthening passenger and cargo traffic between Europe and Asia.
The cooperation with Boeing is complemented by the close economic partnership between Hungary and China. Hungary Airlines plays a key role in the "Air Silk Road", an initiative to promote trade and connections between Europe and China.
Criticism and challenges
Although the move is seen as groundbreaking, critics have expressed concerns about the sustainability of the expansion plans. The planned fleet size may be oversized for a young airline in a highly competitive market. Some observers accuse Hungary Airlines of acting more as a tool of Chinese interests in Europe, as the company is majority-controlled by Chinese companies.
The lack of Hungarian state involvement in the establishment of the airline was also discussed. The government was conspicuously reserved, which seems unusual given the size of the investment and its strategic importance for the national economy.
An opportunity for Budapest?
Despite the criticism, Hungary Airlines offers the opportunity to reposition Budapest Airport as an international hub, especially after the loss of transfer passengers due to the bankruptcy of the former Hungarian national airline Malev. The introduction of a modern fleet and the ambitious plans could increase the attractiveness of the location and unlock the potential for economic growth.
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