Romania must return $37.7m in state aid for Blue Air
The restructuring plan of now-bankrupt Blue Air failed to ensure the long-term viability of the carrier and so violated EU state aid rules, the European Commission has announced, adding that Romania must now recover the RON163.8m lei (US$35.6m) provided to it, plus interest. The European Union executive body’s decision comes after it decided in April 2023 to investigate the viability of Blue Air's restructuring plan and the aid measures implemented to support it. Blue Air was grappling with financial troubles from 2019, before the Covid-19 outbreak. It received approval from the Brussels in August 2020 for two aid measures amounting to around RON300.8m (US$65.4m) to counteract the adverse effects of the pandemic. This included a public guarantee of approximately RON137m (US$29.8m), and a RON163.8m public guarantee on a rescue loan to address liquidity needs. In agreement with the Commission, Bucharest committed to submitting either a liquidation or a comprehensive restructuring plan for Blue Air if the public guarantee on the rescue loan exceeded six months from its disbursement in October 2020. It submitted a plan in April 2021, which was subsequently updated multiple times.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-02-26/unaligned/romania-must-return-37-7m-in-state-aid-for-blue-air
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Romania must return $37.7m in state aid for Blue Air
The restructuring plan of now-bankrupt Blue Air failed to ensure the long-term viability of the carrier and so violated EU state aid rules, the European Commission has announced, adding that Romania must now recover the RON163.8m lei (US$35.6m) provided to it, plus interest. The European Union executive body’s decision comes after it decided in April 2023 to investigate the viability of Blue Air's restructuring plan and the aid measures implemented to support it. Blue Air was grappling with financial troubles from 2019, before the Covid-19 outbreak. It received approval from the Brussels in August 2020 for two aid measures amounting to around RON300.8m (US$65.4m) to counteract the adverse effects of the pandemic. This included a public guarantee of approximately RON137m (US$29.8m), and a RON163.8m public guarantee on a rescue loan to address liquidity needs. In agreement with the Commission, Bucharest committed to submitting either a liquidation or a comprehensive restructuring plan for Blue Air if the public guarantee on the rescue loan exceeded six months from its disbursement in October 2020. It submitted a plan in April 2021, which was subsequently updated multiple times.<br/>
