The air war continues in Romania

Wizz Air appealed against the decision of the Court of Justice of the European Union, which declared the state aid of 36.6 million euros granted to Tarom last year to be legal, writes the You’re masturbating. The lawyers of the low-cost airline found the reasoning of the robed body flawed in seven points.

According to Wizz Air, the fact that it would have been difficult to replace Tarom’s service, and that the competition could not have taken over the state airline’s place, ensuring the continuity of domestic air transport, is unacceptable.

A multi-pronged attack

Wizz Air also filed another lawsuit against Tarom, in which it objected to a 2020 state subsidy of 19.3 million euros. No verdict has yet been reached in this case. The company also appealed to the Court of Justice of the European Union due to the state aid paid to the Romanian low-cost company, Blue Air, in the summer of 2020.

On all three occasions, with the approval of the European Commission, the Bucharest government provided financial support to the two companies to offset losses due to the coronavirus epidemic.

The money comes in vain

Despite having received government support worth 56 million euros over two years, Tarom is still in a critical situation and is waiting for another support of nearly 90 million euros. In the past few days, Transport Minister Sorin Grindeanu also admitted that the situation of the state airline is not rosy, which means that it is dancing on the edge of the abyss.

If the court were to oblige the company to repay the previously received state subsidies, it would be equivalent to bankruptcy. Wizz Air is obviously trying to make this happen, in which case it would quickly fill the void in the domestic air traffic market.

Source: by

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