TAROM (RO, Bucharest Henri Coanda) is to receive two batches of funding from the Romanian state coffers in order to stabilise the ailing carrier and then to allow it to restructure going forward.
The country's Transport Minister Lucian Bode announced on B1 TV, the Romanian television network, which was then subsequently reported on news.ro, that he will discuss the possibility of handing over EUR157 million euro (USD 175 million) to Tarom with the European Commission in Brussels. The first tranche of EUR47 million euro (USD52 million) will be packaged as "rescue aid", with the second consignment of EUR110 million (USD122 million) to be allocated as "restructuring aid". The minister stated that the money will have to be recovered from the airline by the state.
"At Tarom, things look very bad," said Bode. "We will close on RON190 million lei losses [USD44 million] this year. We have around EUR20 million euro available at this moment in the account." It was also his opinion that the carrier's fleet needs some attention. "It is clear that we need to standardise the fleet."
Bode also blamed his predecessor Razvan Cuc for having presided over a "restructuring plan" which actually saw the airline's staff numbers bloat from 1,700 to 1,900. Subsequently Cuc announced in August this year that the airline was firing 300 staff as part of restructuring at Tarom.
The new minister, in post since late October, also took a swipe at the airline's former management, specifically former CEO Madalina Mezei, who Bode said seemed "like the mayor" after she signed a contract for nine ATR72-600s on her first day without even questioning the decision.
Despite these financial woes, Tarom also still seems keen to pursue its long-held goal of resuming flights to the US, with the country's Department of Transportation (DOT) having granted the airline a renewal exemption for two years on its Foreign Air carrier Permit (FACP).
