Romanian state-owned airline TAROM estimates that it will reduce costs by RON 12.7 million (EUR 2.7 million) per year after streamlining its logistic operations and making the IT operations for client service more effective, the company announced on Friday.

The sum resulted after an internal analysis ordered by the new general manager at the end of last year. The company announced that these measures represent the first step in the company’s financial recovery.

Last year was a bad one for TAROM as the company had five general managers. The latest change took place in November, when Wolff Werner-Wilhelm replaced Ileana Daniela Dragne as the company’s interim general manager.

The company initially budgeted losses of some EUR 9 million for 2017 but during the year it came with new estimates showing potential losses of over EUR 45 million. The new budget estimates angered prime minister Mihai Tudose, who asked for changes in the company’s management. In November, transport minister Felix Stroe created a special committee to “make some order in the company”.

TAROM had losses of over 10 million and a turnover of EUR 235 million in 2016.

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editor@romania-insider.com