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Saturday 3 December 2016

Hungary’s Malev grounds fleet after running out of cash

Independent.ie reporters

Published 03/02/2012 | 11:10

Appointed administrator for the Hungarian Airlines, Malev Balazs Fabian (L) with the chairman of the company Laszlo Berenyi. Photo: Getty Images
Appointed administrator for the Hungarian Airlines, Malev Balazs Fabian (L) with the chairman of the company Laszlo Berenyi. Photo: Getty Images

HUNGARIAN airline Malev has grounded its fleet after running out of money.

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The move came a month after the EU said the company had to pay back millions in state aid received in the three years to 2010.

A flight from Dublin to Budapest was one of those cancelled.

However, the Hungarian government has introduced a guarantee to ensure people who have bookings with the airline will be compensated for three days after the closure.

Yesterday, the government had warned it was preparing for a possible grounding of all flights on the State majority owned airline.

"Counterparties cannot void or walk away from prior agreements entered into with Malev,” the Government said.

“The validity of the airline's official licences are automatically extended."

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