WizzAir challenges state aid extended by RO Govt. to Tarom and Blue Air

Hungary-based low-cost air operator Wizz Air, the Romanian air transport market leader, challenged at the General Court of the European Union the decisions of the European Commission for approving state aid to two Romanian airlines: state-owned flag carrier Tarom and private-held Blue Air.

Both Romanian companies received state aid: Tarom received COVID-19 aid of EUR 13.9 mln in October 2020 and a EUR 36.7 mln rescue loan in February, while Blue Air received EUR 62 mln of COVID-19 aid in October.

WizzAir submitted their objection against the state aid received by Tarom in January, and a month ago, it did the same in the case of Blue Air.

Economica.net reveals the action taken by WizzAir after Ryanair, the largest low-cost airline in Europe, announced on May 19 the first victories in its attempt to cancel the state aid received by big air carriers in 16 European countries.

Ryanair says more than EUR 30 bln in state aid has been given to EU companies and that this will distort the market for the next ten years if left unchecked, according to EU Court’s ruling.

Oana Petrescu, CEO of Blue Air, told Economica.net that she knew about the appeal filed by Wizz Air. She says that Blue Air complies with all the requirements related to the EU state aid, including those mentioned by WizzAir.

Furthermore, she says WizzAir itself has also benefited, since April 2020, from a financial aid of GBP 300 mln through the Corporate Covid Financing Facility, provided by the Bank of England.

(Photo: Vesabastian/ Dreamstime)