Airlines
European Commission Okays Romanian State Aid to Tarom
A six-month government loan will keep the Romanian flag carrier afloat and give it time to restructure as it takes delivery of new ATR turboprops.

The European Commission has approved Romania’s plans to grant a 176 million Romanian leu (€37 million) loan to Tarom, throwing a six-month lifeline to the country’s perennially loss-making national airline. The Bucharest-based carrier faces an “acute liquidity shortage” due to the steep increase in operating costs generated by its aging fleet over the last several years, the EC said on Monday, acknowledging that absent the public aid Tarom “will no longer be able to fulfill its payment obligations while keeping operations running.” According to Romanian media, Tarom did not control the resources to finance its operations into March.


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