National Office for Research and Technology
(contact for aeronautics)
Ms Ildiko Helvei
Szervita tér 8.
H-1052, Budapest
Tel: +36 1 4842515, Fax: +36 1 3178717
E-mail: ildiko.helvei@nkth.gov.hu
www.om.hu

Hungarian Space Organisation
Dr. Eniko Patkos
Alkotmány u. 27
H-1054 Budapest
Tel: +36 1 3010969; Fax: +36 1 3010979
E-mail: patkos@hso.hu

HAIF - Hungarian Aviation Industry
Foundation
Mr Mihali Hideg
Lónyay st. 22
1093 Budapest
Hungary
Tel: +361 294 1351, Fax: +361 294 1351
E-mail: aerocluster@gmail.com

Aeronautics sector:

After several decades of Russian influence hindering the development of the Hungarian Aviation the '90s has brought the desired opportunity of growth and closer cooperation with the western aerospace world.

The operation and maintenance of a new western fleet of MALÉV Hungarian Airlines facilitated the emergence of a new management and technical staff with English language knowledge and openness toward the western technologies and collaboration methods.
By he end of the '90s all preconditions were set for a faster growth and development of the aerospace sector.
After the year 2000 Western Aerospace companies quickly discovered Hungary and within 3 years two US, (GE and Alcoa) two German, (Lufthansa Technik and Elektrometal Gmbh) one Dutch (Eldim) and one Italian (FlameSpray) companies established high-tech greenfield sites in 6 different locations in the country. As a result the employment has doubled to 1800 in the sector
These FDIs also opened new possibilities for the Hungarian SMEs to become suppliers of these six integrators.

In 2003 HAIF a new organization has been established to support and promote the industry development. Hungarian Aviation Industry Foundation, a private non-profit organization has launched a Hungarian Aerospace Supplier Initiative (HASI) to link SMEs with the large western OEM.

The continuous GDP growth also resulted in the emergence of 4 small Ultralight and Recreational aircraft manufacturers - with 2 new aircraft types under testing in 2005. (Seastar, Corvus)

The further development of the industry will be based also on the well developed automotive and electronics industry, providing good opportunities for these SMEs to diversify into aerospace. More than 20 automotive part suppliers expressed interest in the HASI program.

Space sector:

Hungary has been engaged in over fifty years of space research. For about the past 25 years, Hungarian scientists have carried out bilateral cooperation with the former Soviet Union, within the framework of the Intercosmos organization. Hungary has participated in planetary missions such as Vega probes to Venus and Comet Halley or Phobos probes to Mars. In 1980, a Hungarian cosmonaut was the first Hungarian to visit the Soviet space station, Salyut-6.

Hungary established a new space organization in 1992. Hungarian space activities have been directed by the Hungarian Space Board and co-ordinated by the Hungarian Space Office (HSO), based on the advice and guidance of the Scientific Council on Space Research. The programmes are financed by the Government in the form of regular and occasional support for space through the Innovation and Technology Fund. The Ministry of Traffic, Telecommunications and Water Management supervises the budget of the Hungarian Space Office.

Hungary's space activities are carried out in nearly 30 different research institutions, belonging mostly to universities, research institutes of the Hungarian Academy of Sciences and other national institutions and organizations.

Since 1992, nearly all of Hungary's national space programmes have been realized through international cooperation with Russia, Ukraine, the central European countries, the European Space Agency (ESA) with which Hungary recently signed a letter agreement for stronger ties, and, most recently, NASA.

Defence/Security sector

Hungary joined NATO on March 12, 1999, along with Poland and the Czech Republic. As a NATO country, Hungary has been moving towards the interoperability and communication requirements that NATO membership requires. Since joining NATO, Hungary has been making procurements based upon NATO requirements for closer integration within the Alliance. Hungary has a set of "Force Goals" that each of the other newer NATO members (Hungary, Poland and the Czech Republic) is required to meet over a period of years.
The production value of the Hungarian defence industry was HUF 10 billion (  40 million) in 2001, reflecting both growth since the end of the recessionary period in 1996 and the effect of offset requirements in major defence procurement contracts. Much of Hungary's defence industry has been privatized since at least the late 1990s and those companies that have been able to find a civilian market in addition to the small defence market have been most successful. According to the Ministry of Economic Affairs, there are about 65 companies involved in the defence industry. About 35 companies actually produce items for defence, while the rest are primarily import/export trading companies. Currently, Hungary's defence related exports total about  9 million, with approximately, 80 percent of the exports originating from ten companies in Hungary.
The ten major defence industry companies cover such activities as aircraft maintenance and upgrading, armoured vehicle development, ammunition production, military simulation devices, radar and missile manufacturing, gas masks and protective clothing, handguns, and defence electronics systems.
There are plans to privatize several 100 percent state-owned defence-industry companies which are listed below. The state plans to retain 50 percent plus one share in these companies.
Since 1996, the U.S. Government has provided Hungary with Foreign Military Funding (FMF) grant money with which the Hungarian MoD can purchase U.S. defence items through the Foreign Military Sales (FMS) system. However, U.S. companies face strong European competition in Hungary. In the past year, the Hungarian MoD seems to be reflecting a general GoH preference for European products and services, a situation possibly linked to Hungary's efforts to achieve EU accession. Therefore, while U.S. firms can expect opportunities in Hungary through the USG provided FMS system, American firms seem to face significant obstacles even when supplying technologically superior, competitively priced equipment through the GoH tendering process.

Po box 107.
Szigetszenmiklós
H-2311, Hungary
Tel: +36-24-451-000
Fax: +36-24-452-000
János Dósa

e-mail: janos.dosa@compsiteone.hu