The latest interim CEO, Ileana Daniela Dragne, appointed at the beginning of October for a one-month term, which was then extended, resigned on Thursday. Neither Tarom nor the Transport Ministry officials provided an explanation. No one is being held liable for the situation at Tarom, which is getting worse and worse.
Meanwhile Polish flag carrier LOT Polish has announced it will introduce its fifth connection to Asia, i.e. Warsaw-Singapore flights next May, and low cost airline Wizz Air, the largest such airline in Central and Eastern Europe signed a deal to buy 146 Airbus aircraft to expand regional operations.
“The resignation of interim CEOs means chaos and lack of control, shows total incompetence in running a company. In a normal world, on a free and competitive market, those appointed to represent shareholders are held liable and answer for such situations,” said Radu Furnica, chairman of Leadership Development Solutions.
“Normally, interim CEOs become full-fledged CEOs, but I haven’t heard about interims resigning. What’s happening is absurd and not normal. A company where interim CEOs resign is doomed to fail.”
State-run Tarom is headed towards losses of about RON1.6 billion in 2009-2017, according to the recent estimates in the rectified spending and revenue budget, which shows the airline will end the year with RON206.7 million losses. Expected losses as shown in the S&R budget were at first RON41.2 million, slightly down on 2016. (EUR1=RON4.6387)
(English version by Loredana Fratila-Cristescu)