February 3, 2012, was a dark day for Hungary. The national carrier Malev (MA) ceased operations, having failed to repay US $171 million in state aid, a sum equal to the company's entire revenue for 2010. The European Union had considered this aid from the Hungarian state to be illegal and had ordered the country to recover the funds from Malev. Without it, the 66-year-old national carrier could no longer fund its operations-and abruptly folded. Although not unexpected, Malev's collapse stunned the airline community. With its head office in Budapest and main operations at the city's Liszt Ferenc International Airport (BUD), the airline had served 50 cities in 34 countries, and had accounted for almost 40 of the airport's total traffic. Its demise left a major void. Budapest Airport Zrt., the airport's operator, was faced with the daunting task of trying to recover from a significant loss of business. Kam Jandu, the airport's chief commercial officer (CCO), said that the impact caused by MA's shutdown "ran into tens of millions of Euros as a one-time effect due to outstanding debts that were never repaid and the loss of revenue, as Malev accounted for 37 of the total revenues when considering aeronautical and property income."
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