Hungarian national airline, Málev, has ceased all operations at 6am today (Friday, 3rd February).

Despite the Hungarian Government declaring Málev Hungarian Airlines "an economic entity of exceptional strategic importance", a precautionary measure designed to protect Málev, the airline ceased all operations and grounded all flights after 66 years of operations.

In January this year, the European Union ordered Málev to repay 88 billion florints (€285 million) in state subsidies received by the airline between 2007 and 2010. However, with a debt of 60 billion florints, the airline was unable to repay the amount and the European Commission barred Hungarian Government from bailing it out. Reuters reports: "Malev said its suppliers had lost confidence in the airline and started to demand payment, while the government could no longer provide cash injections for the company."

Passengers with booked Málev flights, should visit WhichBudget's flights from Budapest page and contact an alternative airline operating their flight.

According to the government regulation which entered into force on 31st January 2012, assistance can be provided to those passengers who purchased their valid tickets before Malév cease and whose travel dates are on the suspension day or on the following three calendar days. In addition, to those who already travelled to their destination on the suspension day or before and posses valid return tickets on Malév flights on a date not later than 29th Februray 2012. Those who are entitled are going to have assistance from Malév by rerouting their tickets to other flights or other modes of transportation.

Hungarian low cost airline, Wizzair, offered a special rescue package to passengers impacted by the suspension of Málev’s operations: passengers who hold a valid Málev electronic ticket for travel between February 3rd, 2012 and March 24th, 2012 can call the Wizz Air call centre at +36 1 358 6565 to benefit from the 9900 HUF fares (all inclusive, one way). Seats are subject to availability and flights must be rebooked by 6pm February 13th, 2012. Additional charges apply for optional services such as checked baggage, pre-boarding, etc.

The collapse of Málev comes just days after the Spanish low cost airline, Spanair, declared bankruptcy and ceased all operations. (see article in Spanish: Spanair cierra sus actividades sin preaviso dejando a millares de pasajeros sin vuelo)

UPDATE:

Brussels Airlines issued the following statement for the attention of Málev passengers (these solutions only apply to tickets issued before/on 3 February 2012):

• Passengers holding a holding a Brussels Airlines ticket for a Malev operated flight, will be rebooked on a Brussels Airlines operated flight free of charge.
• Passengers holding a Malev ticket on a Brussels Airlines operated flight do not need to take action. Their tickets will still be accepted.
• Passengers holding a Malev ticket on a Malev operated flight, are offered a rebooking to a Brussels Airlines flight, against payment of a supplement.

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