The Minister of Transport, Infrastructure, and Communications, Lucian Bode, announced on April 8 that discussions have been initiated with the European Commission for aid dedicated to compensating for the effects of the pandemic on the airlines TAROM and Blue Air, amounting to approximately €130 million.
Bode specified that TAROM, in particular, is in a difficult situation because it received rescue aid of €36 million, but the money is not in the account and can only be used to pay leases. Currently, the postponement of these installments is being negotiated.
„We committed to returning it in six months. If we don’t have this business plan and we find that we cannot return that aid in six months, we would risk it, because we would guarantee with the aircraft, we would risk those aircraft being practically seized, confiscated for the state, and this would be totally inappropriate. We would have no way to function under these conditions. Therefore, we are thinking, trying to find solutions, orienting ourselves… Practically, we transformed two Boeing aircraft, we removed the seats, we transformed them into cargo aircraft.
Asked if technical unemployment is also an issue for some TAROM employees, the minister replied that he does not exclude this option, and that it would be a solution and not a problem.
He specified that a joint note was made for the two airlines for the approval of these aids to the Competition Council, through which the steps are taken at the EC.
According to the data presented by him, official figures show that at the European level, air traffic decreased by 91% compared to the same period last year. In the case of Romania, the decrease is 94%.
Source: Economica
Frequently Asked Questions
What is the total amount of aid requested for TAROM and Blue Air?
The Romanian government is discussing a total aid package of approximately €130 million with the European Commission to compensate for pandemic-related losses.
Why is TAROM’s current financial situation critical?
TAROM received €36 million in rescue aid, but the funds are restricted to lease payments, and the airline risks aircraft seizure if the aid isn’t repaid within six months.
How has air traffic in Romania been affected by the pandemic?
Official figures indicate a 94% decrease in Romanian air traffic compared to the previous year, which is slightly higher than the 91% European average.