Will the government finally buy Budapest Airport? – UPDATE

A consortium led by the Hungarian government made a more generous offer to purchase Budapest Airport this time.

As we wrote this summer, the Hungarian government made an offer to buy Budapest Airport below market value. They announced that they wanted the state to hold shares in the airport and wished to start the nationalisation of it.

The amount of money that the bidder offered was not made public.

Previous offers

László Palkovics said that they “would make a reasonable offer to buy the airport. If this is not possible in this form, then we would like to restore the ownership of the majority holdings of the Hungarian State.”

Later, news got out that the government used various tactics to make the airport’s situation more difficult during the pandemic. Funds and permits to develop the airport were blocked. Read the details HERE.

In September, Daily News Hungary wrote that the government made yet another offer. The goal was the same: buying the majority stake of Budapest Airport.

At the time, it seemed like the airport was considering starting official negotiations, but the business deal ended in a failed trial once again. To find out the details about the government’s second offer, click HERE.

Currently

Now, the government made another offer. In 2019, the airport’s value was 38 million euros. Now, the offer is 4 billion euros.

The final decision has not been made yet, but unofficial sources say that the airport might be inclined to sell the shares this time. Neither AviAlliance, the airport management company based in Germany, nor Hungary’s Innovation and Technology Ministry, which is leading negotiations for the government, made a statement on the topic, writes Bloomberg. Another source said that the government wanted to make a deal this year. The upcoming elections next year may influence this.