February 3, 2012 / 6:46 AM / 7 years ago

Hungary airline Malev stops operating, flights grounded

BUDAPEST, Feb 3 (Reuters) - Hungarian flag-carrier Malev announced on Friday that it had stopped operating because its liquidity situation has become unsustainable and all its flights had been grounded as of 0500 GMT on Friday.

The airline had been placed under extraordinary protection from creditors and a receiver was appointed earlier this week.

Malev said its suppliers had lost confidence in the airline and started to demand payment, while the government could no longer provide cash injections for the company.

“This has accelerated the outflow of cash to such an extent, that by today the situation of the airline has become unsustainable,” Malev’s board said in a statement.

The stoppage comes after the airline was ordered by the European Commission last month to repay millions of dollars worth of state aid received between 2007 and 2010. (Reporting by Krisztina Than)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below