Romanian transport minister hopes to bring national air carrier Tarom to profit by 2024

The Romanian authorities plan to bring the national air carrier Tarom to profit by 2024 by optimizing all costs, transport minister Lucian Bode said on Tuesday, August 18.

The company’s restructuring plan will be applied in the next weeks.

“We aim that, by 2024, we bring Tarom to profit by optimizing all costs, not just the personnel costs,” Bode said, according to Agerpres.

The company will lay off about 600 employees. According to the minister, the restructuring plan also includes optimizing the aircraft fleet, cutting fuel costs, and optimizing some routes.

The Government granted Tarom a bail-out loan worth EUR 37 million in February. The loan turned into a restructuring loan because the company couldn’t pay back the money within six months.

The Government also recently approved state guarantees for loans for Tarom and private airline Blue Air, to help them overcome the losses generated by the COVID-19 pandemic. The guarantees amount to RON 317 mln (EUR 66 mln) for Tarom and RON 300 mln (EUR 62.5 mln) for Blue Air.

editor@romania-insider.com

(Photo source: Pixabay.com)

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Romanian transport minister hopes to bring national air carrier Tarom to profit by 2024

The Romanian authorities plan to bring the national air carrier Tarom to profit by 2024 by optimizing all costs, transport minister Lucian Bode said on Tuesday, August 18.

The company’s restructuring plan will be applied in the next weeks.

“We aim that, by 2024, we bring Tarom to profit by optimizing all costs, not just the personnel costs,” Bode said, according to Agerpres.

The company will lay off about 600 employees. According to the minister, the restructuring plan also includes optimizing the aircraft fleet, cutting fuel costs, and optimizing some routes.

The Government granted Tarom a bail-out loan worth EUR 37 million in February. The loan turned into a restructuring loan because the company couldn’t pay back the money within six months.

The Government also recently approved state guarantees for loans for Tarom and private airline Blue Air, to help them overcome the losses generated by the COVID-19 pandemic. The guarantees amount to RON 317 mln (EUR 66 mln) for Tarom and RON 300 mln (EUR 62.5 mln) for Blue Air.

editor@romania-insider.com

(Photo source: Pixabay.com)

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