The government of Romania has decided to take over 75% of the low-cost airline Blue Air currently struggling with debts.
The stake was put as a guarantee in exchange for a 300 million lei (€60 million) state loan provided during the COVID-19 pandemic.
The Romanian low-cost carrier suspended its operations in early September 2022, after its accounts were seized by the country’s Ministry of the Environment. Blue Air had failed to pay an almost $2 million fine for canceled flights and to fulfill its financial obligations to creditors.
The state will now attempt to recover the funds owed by the airline.
“The letter of guarantee has been executed and the shares will be taken over by the state authority,” Florian Geantă, president of the Authority for the Administration of State Assets, told local news outlet Viva. “We don’t know what we will find when we take over the shares of the Blue Air company.”