Hungary's Malev Grounded over Bankruptcy Fears

Hungary's state-owned Malev airline has stopped flying due to debts worth USD 270 M after the Hungarian government withdrew financing.

Malev halted all flights at 6 am Friday in Budapest. The flight from Sofia to Budapest scheduled for Friday afternoon is among those cancelled.

"Unfortunately, what we fretted about the most and what we've done the most to avert has come to pass," Malev CEO Lorant Limburger has commented, as cited by Bloomberg.

"The board has ordered that the Hungarian national airline stop operations. We extend our apologies to all of our passengers," he has added.

On Thursday, a Budapest court placed Malev under the control of a bankruptcy trustee, saying the airline could make payments only as essential to continue offering service.

Malev is the second European carrier to halt flights in a week. Spanair, based in Barcelona, collapsed on Jan. 27, stranding 23,000 passengers.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!