MALEV is out of money, draws up liquidation plans

MALEV Hungarian Airlines (Budapest) is out of money and has appealed to the government of Hungary for support. However due to recent European Commission rulings, state aid is very limited and this could be the end of the state carrier.

The Chairman of the Board, Dr. János Berényi, has requested the airline management to draw up a liquidation plan.

The airline has issued the following statement:

“During the January 30 meeting of the Board of Directors, Chief Executive Officer of Malév Lóránt Limburger informed the Board that despite the continually improving commercial results the financing of activities had become unviable and was unresolved from the end of January. At the same time, talks with ILFC on Friday had proved successful after agreement was reached that the American leasing corporation would continue to make the aircraft available for continuous operations.

In the interest of ensuring continuous operations, Chairman of the Board of Directors Dr. János Berényi requested Malév management to draw up – by the end of the week – a liquidity plan for the immediate future.

After discussing the Malév report the Board of Directors approached the owners with a request to do everything possible to resolve the situation, even though the Board recognized that due to the EU Commission ruling reached in January concluding that financing provided between 2007 and 2010 was unlawful state support, which further burdens the company’s heritage, the room for manoeuvre of the government is extremely limited.”

Meanwhile the government cabinet has declared the flag carrier to be a company of “strategic importance”, meaning that creditors cannot start the liquidation process.

Copyright Photo: Bernhard Ross.