VINCI hung-a-ry for more as it acquires small stake in an otherwise renationalised Budapest Airport

Since Budapest's Ferenc Liszt International Airport was privatised back in 2005, the current ruling party, Fidesz, has made it clear that it would renationalise it once it got the opportunity. There had been a government 25% share initially retained.

Now that Fidesz is in power, it first moved to do that in 2020, when a state-owned oil company stirred up attention by trying to buy the airport. In 2021 the government said that it was seeking a 'friendly investor' to help it take control, and then in Jun-2023 it began talking to the French operator VINCI about doing just that.

Now the deed has been done, with the state investment company taking an 80% stake and with VINCI the other 20% - with a major operational role and a minor investment one.

The transaction means that Germany's AviAlliance, which had owned and managed the airport in a consortium as the majority shareholder since 2007, has exited completely to focus on Athens Airport and its existing assets in Germany and the Caribbean.

Although this is unlikely to set a precedent as such in this part of Europe, large gains by right wing and nationalistic political parties across the region in European elections suggest that foreign ownership of key foreign assets might at the least come under greater scrutiny.

For VINCI's part, it will be focusing initially on enhancing environmental measures at Budapest.

As for traffic growth, its record at Belgrade Airport (which it operates under concession) will be one the government will hope that it can replicate in Hungary.