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Hungarian State Airline Malev Zrt Shuts Down

hungary state airlineHungary's state airline has shut down under the weight of debts totaling 270 million dollars and two of its planes were seized in Tel Aviv and Ireland to cover debts. 

Adamos Aspris, spokesman for Cyprus Airports, said that this is an unpleasant development which adversely affects the air link between Cyprus and Hungary, explaining that in 2011 Malev Zrt transported to and from Cyprus a total of 78,000 passengers. He noted that Malev was one of the first airlines to connect Cyprus with the rest of the world after Cyprus won its independence from England in 1960.   
"The closing of an airline that flies to and from Cyprus is a blow that comes with economic losses in various fields," he said.
"And the continuing economic crisis is evident that creates bleak prospects for other airlines, facing financial difficulties," he added.
The company, founded in 1946, faced financial difficulties for many years, but its condition deteriorated even more, when the European Commission urged Hungary to ask the company to repay the amounts received in state aid since 2007. 
The company had 2,600 employees and was responsible for about half the flights at the airport of Budapest Liszt Ferenc.
According to a notice posted on its website on February 3rd, those who have tickets for upcoming flights will be compensated fully.

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