printNews

The announcement follows a European Commission ruling early this month that forced the carrier to repay state aid worth hundreds of millions of dollars received from 2007-10, the equivalent of its entire 2010 revenue.

"At today's board meeting, chief executive Lorant Limburger informed the board 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," Malev said.

The airline, which accounts for 40 percent of annual turnover at Budapest Airport, said it had managed to agree with ILFC on the continued lease of its fleet, which comprises 22 passenger aircraft. Malev's management must draw up a liquidity management plan by the end of this week, the airline said, renewing a plea for government help to resolve the situation. (Malev)