State aid: Commission approves €1.9 million Romanian aid measure to compensate TAROM for the damage suffered due to the coronavirus pandemic

The European Commission has found a €1.9 million Romanian aid measure to support TAROM to be in line with EU State aid rules. This measure is aimed at compensating the airline for the damages suffered on 14 routes during the period between 1 July and 31 December 2020 due to the coronavirus pandemic and the travel restrictions imposed by Romania and other countries to limit the spread of the virus. This compensation follows another measure that the Commission approved on 2 October 2020 (SA.56810) aimed at compensating the airline for the damage suffered between 16 March and 30 June 2020. Because of the restrictions in place, TAROM experienced a steep decline in traffic and profitability over the relevant period. Under the measure, the aid will take the form of a capital injection. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or sectors for the damages directly caused by exceptional occurrences, such as the coronavirus outbreak. The Commission found that the Romanian measure will compensate damage that is directly linked to the coronavirus pandemic. It also found that the measure is proportionate, as the compensation does not exceed what is necessary to make good the damage. On this basis, the Commission concluded that the Romanian measure is in line with EU State aid rules. More information on the actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.63360 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.