Wizz Air opposes Malev takeover, labels it a distortion of competition

Wizz Air announced its opposition to the Hungarian Government's take-over of Malev, labeling its support of the carrier as "state aid" (Reuters/Shephard.co.uk, 01-Mar-2010). It called on the European Commission to investigate the deal under which the government will take a 95% stake in the carrier, injecting approximately EUR90 million into the airline.

Wizz Air: "The decision is clearly another case of illegal state aid, this time EUR90 million worth of additional capital…If the Hungarian government implements the recently announced recapitalization of Malev, it would likely be an unlawful state aid as it clearly violates the state aid rules, it is discriminatory, distorts competition… Civil aviation is a sector where market liberalisation has resulted in intense competition, to the benefit of consumers. Competition law (including state aid law) is there to protect such competition and the Hungarian government should respect the rules and guard - if not promote - competition instead of distorting it," Company statement. Source: Reuters/Shephard.co.uk, 01-Mar-2010.