The restructuring aid for TAROM – approved on Monday by the European Commission – will be used to renew the aircraft fleet, optimise destinations and commercial policy, apply solutions to streamline aircraft maintenance, digitise the company and improve its IT environment, including ticket distribution, and also cover the liquidity deficit in 2024, Minister of Transport and Infrastructure Sorin Grindeanu wrote in a social media post.
„The European Commission approved [Monday] the TAROM restructuring aid! Its value is up to EUR 95.26 million, of which EUR 49.53 million is the individual rescue aid granted in 2020 (plus interest). TAROM will use this money for: aircraft fleet renewal; optimisation of destinations and trade policy; applying solutions to streamline aircraft maintenance; digitisation of the company and improving its IT environment, including ticket distribution; covering the liquidity deficit in 2024. I want to thank the representatives of the European Commission for deciding to support TAROM, one of the oldest brands in the European aviation industry!”
According to the European Commission, the measure would enable the company to restore its long-term viability while minimising competition distortions.
„The Romanian restructuring aid approved [on Monday] will help maintain regional connectivity of Romanian citizens and businesses. Following our in-depth investigation, we concluded that TAROM’s restructuring plan will ensure that the airline becomes viable in the long term. To limit any possible competition distortions triggered by the public support, TAROM will significantly downsize its number of routes and aircraft,” Margrethe Vestager, Executive Vice-President in charge of competition policy, is quoted as saying in a press statement released by the commission on Monday.
The notified restructuring measures now include a debt write-off of around EUR 49.53 million (RON 246.19 million) corresponding to the rescue aid amount, approved by the commission in February 2020, plus interest; and a capital injection of around EUR 45.77 million (RON 227.50 million).
AGERPRES
