The European Commission has opened an in-depth investigation to assess whether certain Romanian support measures in favour of the airline Blue Air Aviation are in line with EU State aid rules.
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The Romanian airline Blue Air has been experiencing financial difficulties since 2019.
In March 2020, as other companies active in the aviation sector, it was seriously hit by the coronavirus pandemic.
Since November 2022, Blue Air is not operating as the Romanian authorities suspended temporarily its operating license due to its financial situation.
In August 2020, the Commission approved two measures in favour of Blue Air, namely:
• an around €28 million (approximately RON 137 million) public guarantee to compensate for the damages resulting from the coronavirus pandemic and the travel restrictions imposed by Romania and other countries to limit the spread of the virus; and
• an around €34 million (approximately RON 164 million) public guarantee on a rescue loan intended to partly cover Blue Air's liquidity needs for the following six months.
Romania committed to ensure that the public guarantee on the rescue loan would be terminated after six months, or that it would communicate either a liquidation plan or a comprehensive restructuring plan for Blue Air to the Commission for State aid assessment.
In April 2021, Romania first communicated to the Commission a restructuring plan for Blue Air covering the period between August 2020 and September 2025.
The plan has been updated several times and includes an extension of the duration of the guarantee on the rescue loan to six years (including the initial six months rescue period), allowing for a repayment of the aid until 2026, as well as planned restructuring measures and expected private finance.
In November 2022, Romania reimbursed the loan and took a 75% shareholding in Blue Air.
At this stage, the Commission has concerns that the restructuring plan and the aid measures implemented to support this plan are not line with EU State aid rules, in particular with the Guidelines on rescue and restructuring aid.
The Commission will now carry out an in-depth investigation to determine whether its initial concerns are confirmed. ■