EC allows RO Govt. to guarantee EUR 19.3 mln loan for state airline Tarom
The European Commission (EC) announced on Monday that it approved a state guarantee worth approximately EUR 19.3 million (RON 94 mln) in favor of the Romanian state airline Tarom.
The sum is roughly a third of that circulated in August, when the Government approved the state aid project for the two Romanian airlines, Tarom and Blue Air.
The sum is also well below the lost revenue estimated by the company.
The measure aims to compensate the airline for losses directly caused by the coronavirus pandemic and travel restrictions introduced by Romania and other destination countries to limit coronavirus spread between March 16 and June 30.
Tarom had to cancel most of its scheduled flights, which severely affected its turnover. State support will take the form of state guarantees.
An independent audit firm will check that the aid does not exceed the damage suffered between March 16 and June 30.
On August 20, the European Commission announced that it had approved a EUR 62 million credit guarantee to compensate Blue Air for the damage suffered due to the COVID-19 pandemic.
Tarom requested a state aid of RON 312.7 mln (EUR 64.6 mln) and Blue Air - 300.8 mln (EUR 62.1 mln) for six months. Under a recovery plan before the pandemic, Tarom estimated revenues worth EUR 145 mln during March-August. In comparison, the company now expects revenues of only EUR 38 mln for the same period.