State owned air transport company Romavia, which used to fly Romanian officials to their international missions, was officially declared bankrupt.

A Romanian court decided that the company cannot repay its debt, which amounts to a total of EUR 15.9 million and that the company should be dissolved. The court also named insolvency firm Rovigo as temporary judicial liquidator of its assets.

Romavia was subordinated to the Defense Ministry. The Government decided that the company will go into insolvency at the beginning of this year, according to Mediafax.

Last year, Romavia had revenues of EUR 430,000 and its costs were four times higher at EUR 1.63 million.

The company sold its flagship, the Carpati 707-3K1C Boeing, known as Romania’s Air Force One, in 2012 for EUR 2 million. The airplane had been used by Romanian officials since the Ceausescu regime, but in recent years it had been banned from European airports due to the high noise level.

editor@romania-insider.com