Hungary’s Malev stops flying; financial situation ‘unsustainable’
03.02.12
Hungary's Malev airline says its has ceased operations and grounded all its flights to ‘minimise damage’ after its financial situation became 'unsustainable'. The airline, a member of the Oneworld airline alliance which also includes British Airways, has debts of around 60 billion forints (£170 million) and has been unable to find new investors.
Announcing the decision on its website, after the government issued bankruptcy protection for the state-owned carrier earlier this week, Malev stopped all its flights as of 05:00 GMT today. Its Chief Executive, Lorant Limburger, said: 'From February 3, 6 am (05:00 GMT), after almost 66 years of continuous service, no more Malev aeroplanes will take off.'
Malev was facing a growing risk of insolvency following reports that the company was approaching bankruptcy, Limburger wrote, adding that suppliers had demanded upfront payment 'from one day to the next,' making the airline's position 'untenable.'
Hungarian Prime Minister Viktor Orban told state radio that two Malev planes are still abroad - one in Tel Aviv, the other in Ireland. Last month, the European Union ordered Malev to repay nearly £250 million in illegal state subsidies received between 2007 and 2010. In 2010, Malev's losses reached £70 million.
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