"At 0500 GMT... after 66 years of almost continuous operation Malev will no longer take off,". This is what an official statement at malev.com says.

 

It came after the European Commission ordered Malev to repay various forms of state aid received from 2007 to 2010.

 

The sums involved amounted to 38 billion forints (EUR 130m), a sum equal to its entire 2010 revenue, BBC reported.

 

"Despite its best interests the owner can no longer provide financial resources for the operation of the airline in the wake of the condemning decision of the European Commission," an airline statement said.

 

The carrier employs 2,600 people and is responsible for close to half of all air traffic at Budapest Liszt Ferenc airport.

 

Part of the Oneworld airline alliance, which also includes American Airlines and British Airways, Malev has a leased fleet of 22 passenger aircraft.

 

All Malev flights are cancelled.