Financing of operations “unsustainable as of the end of January”
The struggling Hungarian airline Malev is rushing to draw up a last-minute liquidity plan by the end of the week following its statement this week that it lacked the financing to keep going. This comes after the country’s government took emergency measures in an effort to stop it going bankrupt following a European Commission on January 9 that forced Malev to repay hundreds of millions of dollars in state aid during 2007-2010.
Malev CEO Lorant Limburger said that “despite the continuous improvement in commercial results, the financing of operations has become unsustainable as of the end of January, and it is unresolved.” The airline accounts for 40% of turnover at Budapest’s international airport and employs 2,600 people. It has agreed with the US company ILFC on the continued lease of its fleet of 22 aircraft.
[photo courtesy Malev]