April 7 (SeeNews) - Romanian low-cost carrier Blue Air said on Tuesday that it has requested the government in March to provide it with a rescue loan in order to overcome a slump in its revenue due to the COVID-19 pandemic.
Blue Air is asking the government to extend a loan at a preferential interest rate, the company said in a press release without disclosing the amount of requested financing.
Blue Air said that in the current major crisis situation they need this temporary financial support in order to maintain flight capacity and jobs.
"We are able to repay this credit and the related interest. Therefore, last month we submitted our formal request to the government of Romania and we are confident that any risk and opportunity analysis will lead to a positive response to our request for financing. Otherwise, the market we, as a Romanian company will no longer be able to serve, will be taken over by foreign operators who will not contribute to the Romanian state budget and will not make decisions with the country's best interest in mind," the company said.
Over 90% of Blue Air's employees are in technical unemployment, according to the press release.
In the last three years, Blue Air has paid taxes, fees and contributions to the Romanian state exceeding 300 million lei ($67 million/62 million euro).
Blue Air swung to a 3.4 million euro net profit in the financial year ended September 30, 2019, from a loss of 24.4 million euro in the preceding financial year.
Blue Air, the only air carrier in Romania with 100% domestic capital, started operations in December 2004. In 2013, it was taken over by Airline Management Solutions Company for 30 million euro ($33.3 million).
The airline has bases in Romania, Italy, the United Kingdom and Cyprus and a fleet of 29 aircraft. Blue Air operates flights to more than 100 destinations in 20 countries.
In October 2018, Civil Aviation Group comprising Blue Air and two individual associates, bought the indebted flag carrier of neighbouring Moldova for some 61 million euro.
(1 euro=4.8314 lei)