The European Commission has announced that the now bankrupt Romanian airline Blue Air’s restructuring plan is inadequate to ensure the carrier’s long-term viability, violating EU state aid rules, and requiring Romania to recover the RON163.8m in aid provided, plus interest.
The European Union decided in April 2023 to investigate the viability of Blue Air’s restructuring plan and the aid measures implemented to support it.
Blue Air, facing financial difficulties since 2019, received approval for around RON300.8m in aid in response to the pandemic, including public guarantees on a rescue loan to address liquidity needs.
Despite Bucharest submitting a restructuring plan for Blue Air following EU Commission agreements, an in-depth investigation revealed the plan’s insufficiency to restore the airline’s long-term viability without distorting competition in the single market.
The Commission emphasised that under EU state aid rules, aid beyond a six-month rescue period must be reimbursed or accompanied by a viable restructuring plan, meeting specified criteria to ensure sustainability without continuous state support and to address competition concerns. Romania is tasked with recovering the aid, including interest, through established procedures.
