The CEO of Romanian flag carrier Tarom, George Barbu, resigned during the Board of Directors meeting on June 9. Mihăiţă Ursu, a member of the company's Board, took over the position of interim general manager for the next four months.

Transport minister Lucian Bode announced several hours later the new CEO would have to streamline the company to save it.

He argued that someone from outside the company must do this, as most of the company's employees are close relatives.

"I trust the new CEO. He knows what problems Tarom is facing, and, together with the members of the Board, he has the mission to cut deeply," the minister said, quoted by local daily Adevarul.

Romania's Government approved a EUR 37 million rescue loan in January to help the company survive until March. The Government also considered granting the company a state aid.

Amid the crisis that followed in March, the Government decided to extend loans totaling EUR 130 mln to local airlines Tarom and Blue Air "to help them overcome the crisis caused by COVID-19."

Tarom sent more than 1,000 of its 2,000 employees into technical unemployment during the lockdown to reduce expenses as much as possible.

(Photo: Pixabay)

editor@romania-insider.com