| Carriers - Malev ceased flying |
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Malev Zrt., the state-owned Hungarian airline founded in 1946, ceased flying after the government withdrew financing, becoming the second victim of European austerity measures in a week after the collapse of Spanair SA. Malev, which has debts of 60 billion forint ($270 million), halted flights at 6 a.m. local time, with police guarding its ticket booth at Budapest’s main Liszt Ferenc airport as hundreds of passengers milled around seeking to rebook or get a refund. “What we fretted about the most and what we’ve done the most to avert has come to pass,” Chief Executive Officer Lorant Limburger said in a statement, adding that Malev’s cash-flow became “untenable” after service providers “lost faith” and a European Commission ruling hindered further state support. Governments are becoming reluctant to prop up airlines as Europe’s debt crisis forces the region’s deepest cost cuts in a generation. Barcelona-based Spanair ceased flying Jan. 27 after failed bid talks prompted Catalonia to halt funding, and Sweden, Ireland, Portugal, Poland and the Czech Republic are also seeking to reduce state support for carriers. Ryanair to open 26 Hungary routes after Malev grounded Irish low-cost airline Ryanair announced 26 new routes from Budapest on Friday in a move to capitalise on the grounding of Hungarian airline Malev over unpaid debts. Hungarian flag-carrier Malev ceased operating early on Friday, ending 66 years of almost continuous service, after its planes were held overseas for unpaid debts. Ryanair, which in January announced plans to fly five routes from Budapest, has increased that to 31, most of which will be operating by April, the company said in a statement. It said it will base four aircraft at Budapest and carry up to 2 million passengers per year. Source: Reuters, Feb 03, 2012 |
