Romanian national airline generates massive losses

According to a report in the Adevarul daily newspaper, Tarom, Romania’s national airline, has generated a staggering loss of around $30 million during the first six months of the year. Journalists from the paper, however, were unable to reach Tarom representatives for any official comments on the carrier’s dismal financial situation. Sorin Georgescu, Tarom’s marketing director cautioned that it will really only be possible to determine the precise losses with a high degree of accuracy towards the end of the year and that the currently cited figures may not be fully indicative of Tarom’s yearly performance. Additionally, Georgescu pointed out that Tarom is hardly the only airline experiencing challenging times. The carrier’s marketing director argued that the record high price of petrol, as well as concerns that the international oil supply may be restricted are causing problems for all airlines, and that Tarom is no exception.

Despite these concerns and the carrier’s unenviable financial position, Tarom is planning on buying two new ATR 72 planes, to be used on short-haul, regional routes. Although some have difficulty understanding the logic in expanding a carrier’s fleet when other airlines are grounding planes and downsizing-and especially in light of the dire industry forecast-Tarom explains is decision by noting that it must be able to maintain its share of the market, and in order to do this, it has no choice but to expand its fleet. Currently, the Romanian airline operates 20 planes, but expects to double this number within four years.

Thank you to Valeria Cupa of Adevarul, for her reporting.

www.tarom.ro