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March 31, 2023

Tarom must cut costs, undergo restructuring before privatisation

Tarom has to take strategic measures to cut down costs and to undergo restructuring before the privatisation, as it is a challenge to find an investor at a time of crisis for the European airline industry, Ulrich Schulte-Strathaus, secretary general of the Association of European Airlines (AEA), stated, quoted by Mediafax. The latter argued that the European airline industry had yet to emerge from the economic crisis, which made it difficult for the state to find a buyer for Tarom.

As regards Tarom’s losses, which amounted to nearly EUR 80 M last year, the AEA official stated that all European airlines had been hit by the economic crisis and by the Icelandic volcano eruption. At the same time, Schulte-Stathaus says there are plenty of reasons for which Tarom should become a competitive company.

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