The Minister of Transport, Catalin Drula, estimates that the national carrier TAROM could return to profit in the years 2024 – 2025, according to the restructuring plan.
Catalin Drula stated that intensive work is being done on a restructuring plan, both in writing and in practice. The plan involves fleet standardization, leaving a slightly smaller fleet, about three-quarters of the current size, and staff reduction, which has already begun.
Asked if aircraft from the TAROM fleet will be sold this year, the head of Transport specified that old aircraft will be sold, but new ones will also arrive.
The minister specified that the plan has several steps, and it is currently being notified to the European Commission.
According to this plan, TAROM should return to profitability in 2024 – 2025, Drula specified.
In February, TAROM announced that it had initiated the staff restructuring project, with the estimated duration for implementing the measure being six months, and the average annual reduction in personnel costs is estimated at approximately EUR 8 million.
Other medium-term measures in the company’s restructuring plan aim at aircraft fleet optimization, commercial optimization, and cost optimization.
Frequently Asked Questions
When will TAROM become profitable?
According to the restructuring plan, the national carrier TAROM could return to profit in the 2024-2025 period.
What does the TAROM fleet optimization involve?
The plan involves fleet standardization, selling old aircraft, and acquiring new ones, resulting in a fleet approximately three-quarters of its current size.
What is the financial impact of the staff reductions?
The personnel restructuring is estimated to generate an average annual cost reduction of approximately EUR 8 million.