Blue Air still waits for RO Govt.’s rescue loan
Romanian airline Blue Air still hasn't received the rescue funds from the Government, the company said in an open letter, Economica.net reported.
On August 19, the Romanian Government approved an emergency ordinance (OUG 139/2020) granting RON 300 mln (EUR 62 mln) state guarantees to the company, and the European Commission approved the state aid under an emergency procedure.
Blue Air representatives say that further delays in getting the money will severely affect its operations.
"As long as this credit is postponed, the markets that we can no longer serve will be taken over by foreign operators that will not contribute to Romania's state budget and will not make decisions with Romanian interests in mind. Every day of delay undermines our partners' trust in Blue Air and the Romanian state and strengthens the position of our direct competitors, who take advantage of the unexpected opportunity to fly in a market left unserved by Blue Air," the company said in its open letter to the Government.
More than six months have passed since the company applied for the rescue loan, and the Government began the procedures to extend it.
The company argues that it decided to maintain regular flights, and not downsize to a cargo and charter operator, based on the state's promise for the rescue loan.
The pre-insolvency agreement with creditors was also based on the expectations for the rescue loan.
Blue Air thus urges the Finance Ministry to urgently finalize the draft Government Decision to extend the 6-year loan guarantees that will help it cover the losses caused by the pandemic and to ensure the continuity of its activity.
This loan is an indispensable condition for the approval of the recovery plan by the creditors and the resumption of Blue Air operations on a solid basis.