The Hungarian state has taken a 95% share of Malev Hungarian Airlines.
AirBridge, the previous majority shareholder, retains the remaining 5%.
Vnesheconombank, which also formerly owned shares in the airline, is now a major creditor of Malev.
In a statement, the Hungarian Ministry of Finance said: "The ownership transfer and settlement of the position of Malev is the result of a lengthy series of negotiations.
"In the course of talks the Hungarian state has always endeavoured to assert the interests of the country, ensuring the continuation of the operability of the national carrier, and to achieve all this so taht the agreement complies with domestic and EU regulatory criteria."
The Hungarian state contributed HUF 25.2bn to an increase in equity of the airline, through a cash contribution and conversion of earlier debts.
Malev is now going through an intensive restructuring programme, in a bid to make the airline profitable by 2012. Network restructures, renogiations of agreements with trade unions and suppliers, as well as further layoffs are expected.
Martin Gauss continues as CEO of the airline.
www.malev.com