Malev, Hungary's national carrier, has ceased operations, according to a Feb. 3 statement from the airline's CEO, Lorant Limburger.
A member of the Oneworld alliance, Malev flew mainly to destinations in Europe from its hub in Budapest. It ceased transatlantic operations in 2008.
Malev ticket holders were instructed to phone the airline's call center at (36-1) 802-1111, or email malev@malev.com.
According to a report from Reuters, the shutdown came after Malev was ordered by the European Commission last month to repay millions of dollars worth of state aid received between 2007 and 2010, the equivalent of its entire 2010 revenue. The carrier had been placed under creditor protection earlier this week, the report said.
The Reuters report also said Hungary's prime minister, Viktor Orban, told a Hungarian radio station that the decision to ground Malev was made after two planes were held in Tel Aviv and Ireland.
In 2010, Hungary reacquired a majority stake in Malev in order to save the troubled carrier.
Malev's statement, posted on the airline's website, said that the decision was made to "minimize its losses." Limburger said that the airline's partners had lost trust in the carrier and began to ask for service payments in advance. "This speeded up the cash outflow, and the situation of the airline became untenable," he said.
According to reports, the demise of Malev could mean trouble for Budapest's Liszt Ferenc Airport, which derives about 40% of its traffic from Malev.