The European Commission will withdraw state aid approved for Romania's national airline TAROM if the carrier fails to demonstrate long-term viability by the end of December 2026, acting Transport Minister Radu Miruta said on Tuesday.

'We are now in a situation where a restructuring plan has not been properly managed. You can look at who served as transport minister between 2024, when the European Commission approved the restructuring plan, and 2026, and how they ensured that the plan would be implemented. If, by the end of December 2026, TAROM fails to demonstrate viability, the European Commission will withdraw the state aid granted to the Romanian Government for TAROM,' Miruta told a news conference.

He said he had met the airline's Board of Directors and management on Tuesday and that clear deadlines had been agreed for preparing a revised restructuring plan.

'Next week I will sign a letter submitted by TAROM informing the European Commission that the June 2026 deadline, by which the previous management had undertaken to submit a revised restructuring plan, has been missed. (...) I believe it is fair, honest and helpful for TAROM to inform the Commission that those who were responsible are no longer in office, and that we are committing to submit a draft revised restructuring plan by the end of August or the beginning of September in order to obtain feedback from the Commission on the extent to which it will accept the plan, before presenting a final revised restructuring plan for the next two years by the end of September,' Miruta explained.

The acting minister said there were several arguments supporting the approval of a revised restructuring plan.

'There are valid arguments, including higher fuel prices, which are not TAROM's fault. There have also been delays in the delivery of new aircraft. The new management has undertaken to update the business model to reflect the realities of 2026 by introducing early-booking offers, marketing measures aimed at increasing aircraft load factors and cost-cutting initiatives. As long as there is a coherent, well-founded and justified plan currently being prepared, it is only natural that we should seek to convince the European Commission, even if those previously responsible failed to do their job,' he said.

Miruta added that the new management would revise both the company's budget and its restructuring plan.

'They told me they will submit a budget proposal in September based on the company's actual situation, not on the dreams of certain former managers who wanted money conjured up out of thin air, probably for various less-than-orthodox purposes,' the acting transport minister added.

He also said the airline's former chief executive had been dismissed rather than having resigned.

'The Board of Directors informed me that the TAROM chief executive failed to do his job. That is why he did not resign but was dismissed. That was the sanction decided by the Board,' Miruta said.

In his view, Romania's national carrier should not be allowed to go bankrupt.

'TAROM must not die. It must not be shut down. TAROM must continue to operate, provided that the Romanian state, as shareholder, finds solutions to help this very sick patient get out of its hospital bed,' the minister concluded.

TAROM is implementing a restructuring plan approved by the European Commission, which sets out clear deadlines, performance targets and commitments to be met by the Romanian state by the end of 2026. The plan provides for state aid of up to EUR 95.3 million through debt write-offs and capital injections. Among the conditions imposed by the European Commission are reducing the airline's fleet from 18 to 14 aircraft and cutting the number of routes in order to limit distortions of competition. AGERPRES (RO - writing by: Cristian Anghelache; EN - writing by: Simona Iacob)