Pressure shows on Europe’s frail airlines

The fragility of some of Europe’s airlines was highlighted on the 30 January 2012 when Malev Hungarian Airlines, the state-controlled Hungarian flag-carrier, declared that its finances were 'unviable'.

In addition, Spain's fourth largest airline Spanair went into liquidation.

The predicament of these airlines underlined the rising pressure on some European carriers as they grappled with a deteriorating economic environment, high fuel prices and intensifying competition.

The European market was seen to be concentrating around five large airlines – Air France-KLM, International Airlines Group, Lufthansa, EasyJet and Ryanair.

On the 3 February 2012 MALEV ceased flying.

BBC News, 3.2.12: Hungarian airline Malev collapses http://www.bbc.co.uk/news/business-16866872

European Commission: RAPID: Press Release: IP/12/7: State aid: Commission orders Hungary to recover incompatible state aid from national air carrier Malév http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/7&format=PDF&aged=0&language=EN&guiLanguage=en

Reuters, 3.2.12: Rivals swoop in as Hungary's Malev stops flying http://www.reuters.com/article/2012/02/03/malev-stoppage-idUSL5E8D30IC20120203

Reuters, 30.1.12: Spanair ceases operations, cites financial woes http://www.reuters.com/article/2012/01/30/uk-spanair-qatar-idUSLNE80T01G20120130

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