Wizz Air Calls for EU Sanctions Against Romanian Flag Carrier
Wizz Air Loses Battle Against Tarom’s State Bailout
Hungary’s budget airline, Wizz Air, has been at odds with Tarom, the Romanian flag carrier, over the state bailout the airline received during the COVID-19 pandemic. Wizz Air argued that if Tarom had gone bankrupt, other airlines could have stepped in to serve Romanian passengers on the affected routes. This dispute led Wizz Air to take the case to the Court of Justice of the European Union (CURIA), as they seek to expand their presence in the low-cost market of Romania.
Romania provided a EUR 37 million loan to Tarom to prevent the airline from going bankrupt. However, Wizz Air contended that this financial assistance constituted illegal state support and brought the case to the CURIA. Despite their efforts, the EU’s Court of Justice ruled in favor of Romania, according to Világgazdaság.
In a similar vein, Wizz Air continued its legal action against Tarom in September 2022. The airline had previously expressed its intention to fill the gap left by Tarom’s potential bankruptcy, citing a similar situation with the Hungarian carrier, Malév. However, they clarified that they would only take over certain flights, as stated by the company director at the time.
The pandemic saw various countries providing assistance to their national carriers, much to the dismay of low-cost airlines. Ryanair, for example, raised objections to the bailouts received by Air France and SAS in France.
In the case of Wizz Air’s challenge of Romania’s EUR 37 million loan to Tarom, the EU’s Court of Justice issued a verdict that dismissed Wizz’s claims. The court emphasized the detrimental impact that Tarom’s bankruptcy would have had on several regions in Romania due to the loss of air connectivity.
Furthermore, Wizz Air had previously brought a case to the EU’s CURIA regarding the EUR 60 million bailout of Romanian Blue Air. However, Blue Air ultimately went bankrupt and is now under state ownership.
As the legal battle concludes, Wizz Air’s ambitions to expand in Romania face a setback. The airline will need to reassess its strategy in light of the court’s decision.
