BUDAPEST, Hungary, Feb. 3 (UPI) -- Hungary's state-owned airline Malev Hungarian said Friday it would shut down temporarily due to a critical cash drain.
The company said "cash outflow has accelerated to such an extent that the airline's situation is untenable," the Financial Times reported.
The airline said suppliers were demanding advanced payment, putting the airline in a fragile financial position.
In response, Wizz Air, a discount operator, added a "special rescue package" to scoop up Malev's business and get passengers to their destinations.
Hungarian Prime Minister Viktor Orban, during a radio interview, said the shutdown was "painful" but necessary.
"We tried to keep Maleve operational as long as possible," he said. "But we could no longer do it as we would have lost our aircrafts seized abroad. … We had to stop."
Orban said two of Malev's planes, one in Israel and one in Ireland, were not permitted to take off due to the airline's debts.
