The proposed Minister for the portfolio of Transport, Infrastructure, and Communications, Lucian Bode, stated that the funds necessary to save TAROM, EUR 37 million, could come from the Treasury within three months, and even if the rescue of the company is not approved, the liquidation of the national air operator is out of the question.
Lucian Bode mentioned the steps that will be taken in the coming period for the company’s recovery. Thus, the risk assessment process of the company by Eximbank will be finalized, the evaluation of the mobile assets of the aircraft will be approved by ANAF—as this aid is guaranteed by the aircraft—the agreement between the Ministry of Finance and TAROM will be concluded, followed by the ministerial order; in three months, the treasury loan will be granted, and the restructuring plan must be submitted to the ministry. This restructuring plan will subsequently be notified to the European Commission.
According to Bode, by approving the restructuring plan, the rescue aid will be transformed into restructuring aid and will no longer be reimbursed.
The Commission’s decision to approve the restructuring plan can be issued within a maximum of 6 months from notification, followed by the issuance of an emergency ordinance approving the restructuring aid.
Lucian Bode stated that regarding the contract with Boeing for the Boeing MAX aircraft, he does not know where they will get this money from because that contract was concluded in 2018 without having a source of financing.
On February 24, 2020, the European Commission approved, in accordance with European Union state aid rules, Romania’s plan to grant a temporary loan worth approximately EUR 36.7 million to the state-owned airline TAROM. According to the European Commission, this measure will ensure that air transport services continue to be provided in an orderly manner, especially on the numerous routes where TAROM is the sole provider, and passengers will not be affected by air traffic disruptions, without unduly distorting competition in the single market.
Frequently Asked Questions
What is the value of the rescue aid for TAROM?
The rescue aid amounts to approximately EUR 37 million, intended to ensure the continuity of the national airline’s operations.
What happens if the restructuring plan is approved?
If the European Commission approves the restructuring plan, the rescue aid is converted into restructuring aid and is no longer required to be repaid.
Why did the European Commission approve this loan?
The EC approved the loan to maintain essential air transport services on routes where TAROM is the sole provider and to prevent passenger travel disruptions.