The soap opera Blue Air continues: The Romanian state takes over 75% of the shares!
You thought it was all over with Blue Air? You were wrong! The soap opera of the Romanian low-cost company continues as you might not have imagined. We were informed that Blue Air is in talks with two foreign investors, that there is a chance that the brand will be taken over and a new company will be reborn, like the phoenix bird, from the ashes of the defunct Blue Air, but it will not be like that. The Romanian state takes over 75% of the shares!
Now you may be wondering why Blue Air is nationalized. Well, the matter is as simple as possible. Do you remember the loan taken by Blue Air from EximBank, a loan guaranteed by the State? Well, find out that that loan was guaranteed by the State with the condition that if the company defaults, the State will take over 75% of the company's shares.
Blue Air Company will be nationalized
But what can you see, the State becomes the majority shareholder many months after Blue Air did not pay the installments on the loan and there was nothing left of the said airline. A large part of the fleet returned to the leasing operator, and the only assets left in the company would be dust from the drum and many millions of EUROs in debt.
The State itself admits that it does not know what it is getting into with its voice Florian Geantă, Authority for the Administration of State Assets: "At the moment we received the letter from the Ministry of Finance, that the letter of guarantee has been executed and the shares will be taken over by the state authority. We start the proceedings. We have sent addresses to the Ministry of Finance, to Blue AiR, in the next period we will follow the procedure for taking over the shares. We don't know what we will find when we take over the shares of the Blue Air company and what awaits us when we hand over - receive".
The state takes 75% of NOTHING
What will the State do with the 75% of Blue Air shares? Put them in... Nothing will do because when you take nothing, you have nothing. It will pump money from the state budget to pay the debts, most likely to airports and banks, other creditors, etc. And if there is any money left, maybe they will also give compensation to the more than 150 passengers affected by the canceled flights.
He even says it Adrian Codirlașu, vice-president of CFA Romania: "It generally happens when there are companies, let's say important for the economy of a country, that states intervene, and how do they intervene? With public money, because these interventions cost money. They come up with money, participate in the capital increase of these companies, after which they restructure the companies and make them profitable again". quoted by stirileprotv.ro.
Blue Air, a new black hole in the State's portfolio
But does anyone else think that Blue Air will return to flying and be a profitable / profitable company? Well, the State showed us how an airline has been kept in agony for more than 10 years, and we have TAROM's proof. The state showed us how it "managed" to have a successful airline. Now Romania will have two companies like "black holes"?
It is the first time in the last 30 years in Romania that an airline could no longer pay its operating costs. Over the years, Blue Air had accumulated losses of hundreds of millions of lei. Blue Air's financial impasse has caused chaos at airports around the country this summer after accounts were frozen due to debts accumulated at the Ministry of the Environment. In fact, this with the Ministry of the Environment was just a pretext.
Personally, as much as I love the Blue Air brand, I think it's time for this company to go away. The brand itself has gathered so much hatred from Romanian passengers that I no longer believe that anything can be done for Blue Air. I don't think God or Santa can do any more miracles for this airline. I hope I'm wrong!