Blue Air aims to resume flights from October 10th 2022

Bucharest, September 9 2022

In the first place, we would like to appologize to all Blue Air passengers who have been affected by the impossibility of operating flights starting with the afternoon of September 6th 2022.

 

We would also like to appologise to all Blue Air’s employees and commercial partners for not being able to fullfill our obligations towards them.

 

Last but not least, taking into consideration the public statements issued yesterday September 8th, we found that we were missunderstood; by all means, we would like to express our full gratitude for the help given to us in these moments of maximum crisis by the National Air Transport Company TAROM S.A. as well as the Prime Minister of Romania, but also by the Minister of Transport, for the repatriation of Blue Air passengers stranded outside the country.

 

In the absence of their support and in the absence of a special human effort by all TAROM S.A. employees, as well as those from the Prime Minister's office, the Ministry of Transport and the Ministry of Foreign Affairs, the situation at the present time would have been much worse in terms of the number of passengers stuck in airports.

 

In the last 48 hours, the executive management, the Board of Directors and the shareholders of Blue Air found that the level of ticket sales was significantly affected and the amounts that were collected by the payment processors have been blocked by those, so that the Company does not have at this time all the necessary funds to pay for the fuel and other operational expenses, indispensable for the flights planned from September 12th.

 

In addition, all providers of essential flight services have made the provision of such services conditional on the payment of outstanding debts. In this context, all aspects regarding the way to resume flight activity as quickly as possible were analyzed, discussing directly with various critical suppliers of the company, namely airports, handling companies, fuel suppliers, traffic control authorities, as well as with the owner of the aircraft operated by Blue Air.

 

All this considered, the Company aims to resume flights starting on October 10th, 2022.

The decision to resume flights decisively takes into account the possibility of the company to reimburse all affected passengers the amounts owed and to pay all commercial partners the costs of the services provided in favor of the company.

 

Therefore, we inform all passengers with flights scheduled until October 10th, 2022 not to show up at the departure airports, as these flights cannot be operated.

 

We would like to mention that, during the discussions held in the Board of Directors of Blue Air, the representative of the Ministry of Transport and Infrastructure requested the resumption of flights as soon as possible, and the vote of the representative of the Ministry of Finance could not be expressed. The vote of the representative of the Ministry of Finance is an extremely important one, considering the fact that this institution issued the Letter of Guarantee for the granting by Eximbank SA of the commercial credit in the amount of 300,775,000 LEI, credit guaranteed by 75% of the Company's shares and other assets held by Blue Air and the Company's shareholding.

 

During this period, we are firmly convinced that the 2 investors, with whom the company's shareholders are in extremely advanced discussions at the time when this force majeure situation occurred, will have the necessary time to analyze absolutely all the implications of this event and decide, in definitively, if they want to invest the sums necessary to position Blue Air to the results before the COVID - 19 pandemic and to cover the losses of approximately EUR 130,000,000 suffered during this period, due to the flight bans, the uncertainty regarding the many waves of the pandemic, the increase absolutely sudden and at extraordinary levels in the price of kerosene, mainly caused by the war in Ukraine, and the over 15% decline in the EUR-USD purchasing power.

 

The State aid was strictly dimensioned to cover the losses suffered by Blue Air during the suspension of flights, as a result of the declaration of the state of emergency in the period March-June 2020 and the cash deficit of the Company on the December 31st 2020, given that the pandemic has deeply affected the company's revenues in the period 2020-2021.

 

We seek to provide in the shortest possible time additional details about the way in which the activity of air passenger transport will be resumed.