The national airline TAROM estimates that this year it will reduce its losses to 49 million RON, from 110 million RON in 2014, and is considering streamlining the staffing scheme by reducing personnel, with a decision in this regard expected next year.
TAROM CEO Christian Heinzmann stated that turnover will reach 300 million EUR this year and that next year TAROM’s revenues will be close to expenses, with the company expected to achieve operational profit by 2017 at the latest.
The average load factor for TAROM aircraft is 68%, and kerosene expenses account for 23-24% of total costs, compared to 30-35% before the oil price collapse.
Heinzmann also specified that TAROM has about 2,000 employees, the same number as when the company operated 60 aircraft, which is why he is considering staff reductions.
The company’s management is working on an employee evaluation procedure, currently non-existent, and will develop a new strategy that will bring changes within the company, one of which is the debureaucratization of the air carrier.
Source: Economica
Frequently Asked Questions
What were TAROM’s estimated losses for 2015?
TAROM estimated losses of 49 million RON for 2015, a significant reduction from the 110 million RON loss recorded in 2014.
When does TAROM expect to become profitable?
The company expects revenues to align with expenses in 2016 and aims to achieve operational profit by 2017 at the latest.
Why is TAROM considering staff reductions?
The airline currently employs 2,000 people, the same number as when it operated 60 aircraft, leading management to seek efficiency through personnel cuts.