6-Feb-2012 11:31 AM

Malev ceases operations

Malev formally ceased operations at 06:00 on 03-Feb-2012, to minimise its losses. CEO Loránt Limburger said that while there were prospects to continue operations, the airline's partners lost their trust due to information published on the carrier and started to request payment for their services in advance. This accelerated cash outflow at the airline, making its situation untenable. The Hungarian Government controlled 95% of the interest in Malév but was unable to provide additional funds, given an EU decision on state aid, which ruled the EUR130 million in government funding provided to the airline between 2007 and 2010 was “unlawful state support”. The carrier was ordered to repay the aid. Malev had debts of approximately HUF60 billion (EUR269 million) with Russia’s Vnesheconombank (VEB) owed approximately EUR100 million, according to Moscow Times. The carrier operated a fleet of 22 aircraft and employed 2600 workers. [more - original PR] [more - CAPA Analysis]

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