Romania’s state airline Tarom expects another year on the red

Romania’s state owned airline Tarom expects EUR 26 million losses this year, according to the 2014 budget which was recently approved by the Government. Tarom ended each of the last six years with losses, which totaled some EUR 270 million for the period. Not even the appointment of the private management didn’t bring the company to profit. In 2013, Tarom posted a EUR 29.4 million, 43% lower than in 2012. Belgian Christian Edouard Heinzmann was appointed CEO of Tarom in November 2012, but in 2013 the company’s administration board wanted to fire him. In the end, the Transport Ministry decided to fire the board and keep Heinzmann as CEO. Tarom’s budget that was approved by the Government features total revenues of EUR 350 million, 22% higher compared to those in 2013, which were EUR 288 million. These would be the highest revenues for Tarom since 2008. The company’s total costs are also expected to rise to EUR 377 million, up 19% compared to 2013 (EUR 317 million). Andrei Chirileasa, andrei@romania-insider.com