On June 22, the Government adopted the budget for the national airline Tarom. Estimates for this year show that Tarom will record total revenues of 1.52 billion RON, an increase of 8.91% compared to the previous year’s preliminary results.
Tarom estimates it will record losses of 6.8 million RON this year, after the company reported a net loss of 27.4 million RON last year.
This increase is driven by a 12.58% rise in operating revenues. Revenues from passenger and cargo transport on scheduled flights are estimated at 1.3 billion RON.
For this year, the company’s expenses are estimated at 1.53 billion RON, of which operating expenses account for 1.44 billion RON.
Personnel expenses are estimated at 215 million RON, 7.86% higher than last year’s preliminary figures. The projected number of personnel at the end of this year is 2,083 employees, compared to 2,110 positions provided in the organizational chart, and the average number of personnel is 1,923 employees. The average monthly gain per employee is 5,742.41 RON, according to the Government’s statement.
Tarom presented the Government with its measures and initiatives for this year:
– replacing the operation of A310 aircraft and optimizing the narrow-body fleet, removing A310 aircraft from commercial operation and capitalizing on them;
– evaluating the replacement of ATR 42/72 aircraft with JET aircraft of similar capacity to ATR;
– implementing an integrated IT system, considering that the current IT system configured in the 2000s does not allow real-time decision-making in line with competitive market realities.
– strategic consultancy services – to make a decision regarding the renewal of the TAROM fleet and the efficient operation of routes, a tender procedure was initiated for contracting strategic consultancy and operational and financial restructuring consultancy services.
– improving services offered to passengers
– restructuring the company – in the first stage, changes will be made to the organizational structures to improve and streamline the company’s decision-making processes, with further steps to follow.
Source: Economica
Frequently Asked Questions
What is Tarom’s projected revenue for this year?
Tarom estimates total revenues of 1.52 billion RON, representing an 8.91% increase compared to the previous year’s preliminary results.
What are the expected losses for Tarom in the current budget?
The company forecasts a loss of 6.8 million RON, a significant reduction from the 27.4 million RON loss reported last year.
What strategic initiatives are planned for the fleet?
Key initiatives include phasing out A310 aircraft, evaluating the replacement of ATR 42/72 models with JET aircraft, and seeking strategic consultancy for fleet renewal.