700 Million RON Losses in 2020 for 3 Airlines<\/p>\n
Airlines recorded losses of 700 million RON in 2020, on a turnover of 480 million RON.<\/p>\n
The most affected were TAROM, Wizz Air, and Tiriac Air, accumulating a loss of 650 million RON, approximately 93% of the total value, according to data provided by the confidas.ro platform.<\/p>\n
In 2020, the national airline TAROM tripled both its turnover and its losses, which reached nearly 440 million RON, up from 170 million RON in 2019. Part of the company’s losses will be covered by state funds arriving in 2022, according to the state budget project recently adopted by the Government. This provides for “increasing the state’s contribution to the share capital of the commercial company National Romanian Air Transport Company – TAROM – S.A. for the compensation of losses suffered as a result of the COVID-19 pandemic, in compliance with state aid procedures.”<\/p>\n
Wizz Air’s local subsidiary recorded losses of approximately 140 million RON in 2020, a 71% increase compared to 2019.<\/p>\n
The company will benefit from a state aid scheme funded by the Sibiu County Council, worth nearly 380,000 EUR. Based on the contract, Wizz Air must ensure a minimum of two weekly frequencies from Sibiu until November 2022.<\/p>\n
Wizz Air is the third airline to benefit from the state aid scheme funded by the Sibiu CJ, alongside Lufthansa and Austrian Airlines, with whom contracts were concluded in July 2021 and November 2021, respectively.<\/p>\n
Ion Tiriac Air recorded losses of 70 million RON in 2020, the first year of the pandemic, 10 times higher than in 2019. The company specializes in VIP and corporate charter air transport and is registered in Cyprus, with Bebington Investments Limited holding a 6.3% stake, while Callum Investments Limited holds 93.6%, an operation that took place in 2015.<\/p>\n
Carpatair SA recorded losses of 25 million RON in 2020, although it had a net profit of 8 million RON in 2019.<\/p>\n
Only two companies recorded a profit in 2020, both operating private flights in the corporate segment. Just-Us Air SRL, wholly owned by Andrei Valeriu Petru, reported a net profit of nearly 500,000 RON in 2020, from losses of 13.4 million RON in 2019, and General Aviation Service SRL, controlled by Sorin-Dan Iuhas with a 99.5% stake, had a net profit of 180,000 RON in 2020, which was, however, a decrease compared to the previous year.<\/p>\n
Which airlines were most affected by the pandemic in 2020?<\/strong><\/p>\n TAROM, Wizz Air, and Tiriac Air were the most affected, accounting for 93% of the total losses recorded by the sector in Romania.<\/p>\n How much did TAROM’s losses increase in 2020?<\/strong><\/p>\n TAROM’s losses nearly tripled, rising from 170 million RON in 2019 to approximately 440 million RON in 2020.<\/p>\n Were there any profitable airlines in Romania during 2020?<\/strong><\/p>\n Yes, Just-Us Air and General Aviation Service, both specializing in private corporate flights, managed to report profits despite the pandemic.<\/p>\n","protected":false},"excerpt":{"rendered":" 700 Million RON Losses in 2020 for 3 Airlines Airlines recorded losses of 700 million RON in 2020, on a turnover of 480 million RON. The most affected were TAROM, Wizz Air, and Tiriac Air, accumulating a loss of 650 million RON, approximately 93% of the total value, according to data provided by the confidas.ro…<\/p>\n","protected":false},"author":0,"featured_media":69232,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2856],"tags":[141,3095],"thb-sponsors":[],"class_list":["post-117269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conectivity","tag-tarom","tag-wizz-air-en"],"article_style_override":"on","post-style":"style2","post_via":"","post-top-image":"https:\/\/rhn.ro\/wp-content\/uploads\/2019\/11\/transport-2.jpg","_links":{"self":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/117269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/comments?post=117269"}],"version-history":[{"count":0,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/117269\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media\/69232"}],"wp:attachment":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media?parent=117269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/categories?post=117269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/tags?post=117269"},{"taxonomy":"thb-sponsors","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/thb-sponsors?post=117269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}