Blue Air suspended all flights departing from Romania, 3,000 passengers stranded / Company accuses the Ministry of Environment of freezing accounts / Ministry of Environment refuses to lift the seizure of accounts for a debt of 28 million lei

Blue Air announced Tuesday in a press release that it is suspending all flights departing from Romania as of today. On the other hand, the company claims that flights to Romania will be operated as scheduled.

The company claims that the decision was taken after the Ministry of Environment put a lien on all the company’s accounts, according to the release.

Cristian Rada is the main shareholder and CEO of Blue Air.

Meanwhile, chaos broke out at Otopeni Airport after travellers found their flights cancelled.

Blue Air accuses the president of the National Authority for Consumer Protection (ANPC), Horia Constantinescu, that his statements have led to the destruction of passenger confidence in Blue Air, generating losses of more than 5 million euros by reducing the volume of ticket sales.

Blue Air also alleges that Constantinescu’s statements led to increased pressure from key suppliers to pay in advance the amounts required for daily operations, and blocked discussions in London between Blue Air’s shareholders and two major investment firms interested in becoming Blue Air shareholders.

Blue Air announced as recently as Tuesday that it would transfer more domestic and international flights to the new Romanian company AirConnect, according to Economedia. It was set up by a former Blue Air executive himself, who nine years ago was involved in the purchase of Blue Air from businessman Nelu Iordache, and several shareholders directly linked to businessman Dorin Ivașcu, who controls Tuzla Airport and was head of Tarom’s foreign offices during the communist period.

Prime Minister Nicolae Ciucă announced on Tuesday that the state institution that has put a lien on the accounts of the airline BlueAir is the Administration of the Environment Fund (AFM), subordinated to the Ministry of the Environment and that it will unblock the accounts swiftly. The Prime Minister also said that 3,000 passengers are affected by Blue Air’s decision.

Environment Minister Tanczos Barna made statements about Blue Air. He confirmed that the Environmental Fund Administration had blocked the company’s accounts for a debt of 28 million lei, but refused to unblock the accounts, as Prime Minister Nicolae Ciucă had asked him to do, and said that Blue Air must resume flights immediately.

Minister Tanczos Barna said BlueAir must ask the Environmental Fund Administration to reschedule the debts.

Tanczos Barna said that the Ministry of Environment, through the National Environmental Administration, had frozen Blue Air’s accounts because the company had not paid for greenhouse gas certificates, which are mandatory for the aviation industry.

„The accounts have been frozen by the AFM because BlueAir is in foreclosure proceedings, which is why the debt has been recovered. The decision to suspend flights is unjustified. Blocking the accounts does not justify stopping flights. I call on Blue Air to resume flights immediately, to honour its obligations to customers. Blue Air to ask AFM to pay off its debts. It has not purchased and has not surrendered the greenhouse gas certificates. Blue Air has not complied with the law,” said Tanczos Barna.

Ministry of Tourism came out with a statement as well: „In view of the situation generated by Blue Air’s decision to suspend all flights, MAT wishes to inform travellers of their rights:

– Tourists who have taken holiday packages from travel agencies are asked to contact them. According to OG no.2/2018 on travel packages and related travel services, as well as for the amendment of some normative acts, the travel agency is responsible for the execution of the package and to offer alternative services.

– Travellers who purchased tickets directly from Blue Air can recover their money and related compensation under European Regulation 261/2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights.”

Blue Air, massive losses

Blue Air is currently in a difficult financial situation, having ended 2020 with a turnover of 537 million lei and losses of over 403 million lei and a number of employees down by almost 30% to 806, according to data from the Confidas platform. No data is available for 2021, and the company declined to make it available to Economedia.

Recently, the company was fined 2 million euros by the Consumer Protection Agency, because the operator canceled almost two hundred thousand bookings in the period 30.04.2021-30.04.2022.

The company said it will appeal in court the fine received by the National Authority for Consumer Protection (ANPC) and accused that ANPC representatives are fining the company even though it does not have the most cancelled flights.

Subsequently, ANPC president Horia Constantinescu said that Blue Air is preparing to exit the market and is delaying the receipt of the minutes on the fine imposed by the ANPC and the obligation to give back the money to consumers.

Translated from Romanian (Ovidiu Harfas)