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Aviation History
1969
1969 - 0080.PDF
64 MALEV . . . to absence of a profit incentive. Another reason is the rela tively low price of labour in Eastern Europe; this acts as a wonderful inducement to use man as a machine substitute. In Hungary, however—as elsewhere in Eastern Europe—there are increasing pressures towards the rnoTe intensive use of manpower. At present, for instance, Malev is doing a study to discover the break-even point when an electronics reservations system would become economic. Except for this relative lack of mechanisation, the whole commercial and sales organisation of Malev is run on lines very similar to those of any equivalent medium-sized inter national airline. Although not a member of IATA, Malev accepts IATA fares on its western routes; takes part in the European scheduling committee; accepts national pro-rates: and conforms generally to IATA practices. Twice a year it participates in a conference between Eastern and Western European airlines to discuss tariff matters. It has 35 genera) agencies abroad and has interlining agreements with almost 60 carriers; the first was Swissair, back in 1952. It has three sales offices in Budapest, all dealing with western and eastern travel, and pre-paid travel (normally by Hungarians who have had their fare paid in advance by relatives abroad). The air line also maintains 24 offices abroad, the first having been opened in Frankfurt in 1959. If there is one striking feature on the marketing side it is in the high standard of its in-flight catering. Serving Hungarian specialities and wine to its economy-class passengers is the one main luxury in which Malev indulges by virtue of its non- membership of IATA. The technical division employs about 550 personnel, this lowish figure reflecting the fact that Malev no longer does its own engine overhaul. Until recently the engines of Il-14s were overhauled in Budapest, but with the run-down of this type it was no longer economic. As far as the Il-18s are concerned, the Russians have not yet made it possible to overhaul engines outside the USSR, nor are there facilities for major aircraft overhaul. This means that aircraft and engines have to be returned to their homeland, often for longish periods of time. Although engines of II- 14s never improved on an overhaul life of around 880hr, the 4,000 e.h.p. AI-20 turboprops which power the 11-18 now have a TBO of 3,000hr (they started life at l,500hr). Time-expired engines are normally sent by rail to Moscow for overhaul. Major aircraft overhaul is also carried out in Russia; this involves each aircraft having to spend up to two months out of commission while having the Russian equivalent of an old- fashioned Check 4. Other factors which keep utilisation down— the Il-18s average only about l,800hr each year—are the virtual absence of night flying (mainly caused by customer resistance) and the heavy seasonal fall in air travel during the winter. In contrast to the technical division the operations division has a surprisingly large number of staff for an airline with so few aircraft. This is 'because of the heavy crew complement which is characteristic of Russian aircraft. The DC-3-sized 11-14 has a cockpit crew of four (two pilots, one flight engineer and one radio officer). The larger Electra-sized 11-18 has a crew of five (as 11-14, plus navigator). And the new Tu-134, unlike its western rivals, needs a navigator as well as two pilots. This is because the configuration of the aircraft (military influence?) requires the navigator to be stationed in a forward nose-bay compartment. This past summer the cockpit crew strength has stood at 52 pilots, 26 flight engineers and 16 navi gators, with ten sets of crew starting training with Aeroflot on the Tu-134—for qualification on which a pilot must have 5,000hr on Il-18s, or other commercial types. Another factor tending to push up crew strength is a fairly strict programme of flight-time limitations. Annual, quarterly, monthly and daily maxima are set at 800hr, 260hr, lOOhr and 8hr respectively. One rest day must be given after three full consecutive working days. Also a minimum of six rest days must be allowed each month, with at least one day off each week, the dates of the off days being known at least a month ahead. Pay is on the basis of a basic 3,000 forints a month plus 10 fillers per kilometre. This works out in practice roughly at Ft80,000 a year for an 11-18 captain. At official exchange FLIGHT International, 9 January 1969 rates (Ft28 = f 1) the 11-18 captain's pay is equivalent to almost £3,000 a year. At the tourist exchange rate—which reduces internal Hungarian prices to a more realistic western European level—the equivalent would be only just over £1,000. As in Aeroflot, pilots are subjected to unusually vigorous medical standards. For instance, every day on reporting for duty each pilot has to undergo a medical check-up including blood pressure, general appearance and condition, temperature and recent use of medicines or drugs. No alcoholic drinks are allowed within eight hours of flying. If a pilot fails the breathalyser test—and that test is frequently given—he is automatically dismissed. Training is also unusually vigorous. In addition to routine route and proficiency checks, each pilot spends a minimum of one month a year on technical training, and three to four months in case of transition to a new aircraft type. Generally speaking, the standard of navigational aids is high in Hungary and in Eastern Europe. The Il-18s are fitted, for instance, with Doppler and radar. Another point is that Malev pilots tend to prefer flying in Eastern Europe because of the better segregation of civil and military aircraft. Strangely enough, on airways within Eastern Europe it is standard practice to use English for communications. Although the economic/finance division is the smallest in terms of manpower, it is of particular interest because of the implementation of the new economic mechanism. By the same token, it is also probably at present the most heavily over worked. Before the introduction of the new economic mechanism, Malev already benefited from an effective accounting system. It was normal for detailed monthly traffic statistics to be available at the end of the first week of the following month and for the financial results to be ready a week later. Manage ment was provided also with detailed quarterly financial results given on a route-by-route basis. Indeed, the only significant gap in the reporting systern was the lack of data on revenue by point of sale. It was recognised that this information would be very difficult to compile on a manual basis, but 1CT equip ment is now being installed which should allow this more sophisticated information to be available by next spring.' What has changed as a result of the new economic mechanism is the need for much greater financial discipline. It has also meant a much increased workload to deal, for instance, with taxation (now set at 60 per cent of profit;, or with raising capital (Malev did not previously have to fund equipment; instead it merely paid rental fees). A major task facing Mr Kertai has been to segregate Malev's omnibus accounts into separate compartments, each corresponding to the separate activities of the enterprise. Another major task has been to install more sophisticated procedures for cost control and for financial measurement. This has called for unscrambling the previous accounting system and substituting a new version capable of meeting the increased standards placed on it by management, without hindering the normal workings of the airline. It is not surprising to find that Mr Kertai, like the legendary hard-pressed air traffic controller, has a large glass fish-tank in his office. The first Hungarian air service was flown on July 4, 1918, with a Hansa Brandenburg, carrying mail from Budapest to Vienna; the straight-line distance of 133 miles was covered in 2hr Smin
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