Unions at Hungary's loss-making state airline Malev would consider strike action if the planned privatization went ahead in its present form, they said on Tuesday.

"None of the bidders have put in bids which could be characterized better than mediocre," spokesman Tibor Hegedus said on behalf of Malev's six unions.

"We are willing to demonstrate and even go on strike and we will consider anything to stop this transaction," he said.

Hungary's state privatization agency is holding talks with a consortium called Airbridge, which is backed by Russian airline KrasAir, and which is its preferred bidder over a consortium made up of former managers from Malev.

Those talks were exclusive for 30 days from July 28.

The Malev unions said that the sale, which has also been opposed by Hungary's opposition party which is ahead in opinion polls for elections due in spring 2006, was being made too early.

They said Malev should be given a chance to reap benefits from the oneworld airline alliance led by American Airlines and British Airways.

They also said that a restructuring program, aimed at boosting Malev's financial performance, should be given time to work and that selling the airline in two years would get a better price.

Malev made an operating loss of HUF4.4 billion Hungarian forints (USD$21.9 million) in 2004, but is saddled with debts of around HUF36 billion (USD$179 million), which are guaranteed by the state.

According to Hungarian newspaper reports, both bidders have offered to take on part of the debt and to pay a couple of hundred million forints for the airline. These reports have not been confirmed by the privatization agency.

Hungary has already failed to sell Malev four times since the end of communism in 1990.