Malév Hungarian Airlines has ceased operations under pressure from rising debt. A statement from the Hungarian flag-carrier read: “At 05:00 GMT, after 66 years of almost continuous operation, Malév will no longer take off.”
Japan Airlines is to cull a third of its workforce, more than 16,000 jobs, and close a number of unprofitable domestic and international routes as part of its aggresive restructuring plan.
Mexicana de Aviacion has suspended all flights, three weeks after filing for bankruptcy protection as a last-minute rescue package failed to materialise.
A consortium of Mexican businessmen has bought a 95 percent stake in the holding company that controls Mexicana, in a deal that is hoped will secure the fortunes of the troubled carrier.
Mexicana de Aviación has secured a potentially significant victory as it battles for survival, with cabin crew at the troubled airline agreeing to defer wages. Crew will postpone payment for up to two months, with pilots at Mexico’s largest airline considering a similar move.
Mexicana Airlines has suspended all flights from London Gatwick to Mexico City after filing for bankruptcy protection last week. The route, which was launched in October 2008, is one of 18 being halted over the next two days as the airline undergoes a financial restructuring programme as it bids to slash its £628 million debt mountain.
The Iraqi government has closed national carrier Iraqi Airways over a dispute dating back to Saddam Hussein’s invasion of Kuwait in 1990. Kuwait Airways claims that the Iraqi flag carrier owes it $1.2bn for aircraft and plane parts seized during the first Gulf War. All flights have been cancelled with immediate effect, including services to London, Dubai, Cairo and Istanbul.
Shares in Japan Airlines fell by 45% to a new all-time low today amid fears that the airline would file for court-protected restructuring within a week, which would render the shares worthless.