A court has approved the company’s request for safeguard procedures.
The safeguard procedure concerns companies which are not in a state of insolvency but are facing difficulties that they can not overcome and may lead them to insolvency. The aim of this procedure is to enable the company to continue its activity, maintain its jobs, and discharge its liabilities by reorganizing the company under court supervision.
Blue Air, as the global aviation industry, has been hard hit by the coronavirus pandemic and travel restrictions. The Romanian airline resumed some of its regular flights starting July 1 and plans to resume all flights as restrictions are lifted.
“At Blue Air we are determined to honor all our commitments and pay all our debts. We are counting on the support of our partners and the trust and mutual respect developed throughout years of collaboration and we will take all necessary steps to continue to operate under the highest standards. We are confident in the support of our partners, colleagues and collaborators – together we will overcome this difficult time for Blue Air and the aviation and tourism industries,” said Blue Air CEO Oana Petrescu.
The safeguard procedure is part of the airline’s restructuring process after its revenues dropped by more than EUR100 million in March-June 2020. The procedure will allow the airline to prioritize operational costs for regular flights as of July 16, when Romania is expected to lift the state of alert.
Once it resumes its regular flight schedule, Blue Air expects to gain revenues throughout the next 18 months to pay its debts to creditors, including passengers and tour operators, while direct revenue loss caused by the pandemic will be supported by state aid the government approved late April.
Blue Air will be assisted by KPMG Restructuring throughout the safeguard procedure.