The iconic MALÉV name is about to disappear forever

The government has decided to initiate liquidation proceedings regarding the economic, financial and liquidity difficulties of MALÉV Ground Handling Ltd. The Hungarian Airline company became insolvent due to the coronavirus pandemic, and in March, the majority of the approximately 430 employees were fired. From April, a significant proportion of the workers involved in the service activity were exempted from working because nearly all flights were suspended.

MALÉV GH Ltd., which earlier provided ground handling services to MALÉV, has been struggling with fundamental financing problems since its liquidation in 2012, wrote the Hungarian National Asset Management Company (HNAM), the current owner of MALÉV GH.

The intense competition in the ground handling market of Budapest Ferenc Liszt International Airport significantly contributed to the fact that the company has been operating at a loss. A new Hungarian airline company under the name of Veritas should have been launched before the bankruptcy of MALÉV. However, state investors intentionally delayed the start while the government still founded the airline company, Index reported.

Although MALÉV GH managed to make a modest profit in 2018 as a result of previous reorganisations, it was not able to compensate for the significant loss accumulated during the earlier years. Finally, the economic situation of MALÉV GH became critical due to the coronavirus crisis and the flight suspensions; the company became insolvent by June.