European Commission orders recovery of €33.84 million in incompatible State aid from Blue Air

The European Commission has determined that Blue Air’s restructuring plan, aimed at restoring the airline’s long-term viability, is incompatible with EU State aid rules. The Commission ordered Romania to recover approximately €33.84 million (RON 163.8 million) in illegal State aid provided to Blue Air.

The airline, facing financial difficulties since 2019, received public guarantees to address the impact of the COVID-19 outbreak and a rescue loan. The Commission found the restructuring plan inadequate and unrealistic, as demonstrated by Blue Air’s inability to sustain operations and its subsequent request for insolvency proceedings. Romania must now recover the unlawful State aid, including interest, as per EU State aid rules.