Hungary's Malév taken under bankruptcy protection

Under a government decree, Hungary’s state-owned airliner Malév is now classified as a company of key strategic importance as of 07 a.m. this Tuesday. This means the company has been taken under bankruptcy protection.

Hungary’s state-owned airline Malév can run out of money in a matter of days. If the state respects the early January decision by the European Commission and refrains from granting further aid for the carrier - because it is not allowed to - Malév will be hardly able to fly any more planes in February.

The last glimpse of hope to keep the company afloat was the carrier's general meeting last Friday, but its owners did not vote to raise the carrier’s capital, portfolio.hu quotes the Hungarian news portal index.hu.

Reporters were referred to the development ministry on every inquiry about the airline’s financial situation and future funding, but the ministry has not responded to any of their questions. It has not even refuted information that Malév will run out of money by early February and could have its planes grounded already this weekend.

This marks the end of a string of financial assistance that has been granted for the airline since its re-nationalisation in early 2010. Malév has received funding first occasionally then - by the end of 2011 - on a regular basis, portfolio.hu concludes.