Earlier this year, the Government promised the International Monetary Fund (IMF) it would cut costs at Tarom, with the plan to include returning the leased Boeing 737-800 which is still in its fleet, or bring the rental fee down to the market level. According to the deal, this operation was to be completed no later than end of March.
Romania has failed to do so, and the latest letter, negotiated by the Government and IMF at the end of the April-May review, says the deadline has been pushed back to the end of June. The letter also says that the case has wound up “in London court,” which may rule that the aircraft may not be returned, meaning Tarom will be required to publish a report regarding the aircraft’s impact on the fleet’s financial results.
London is also home to the Court of International Arbitration, which provides dispute resolution in commercial cases involving companies.
According to the letter, Tarom will also slash costs through voluntary personnel departures, by cancelling certain routes, renegotiating the flight crew leasing contract and expanding the fuel saving program.
Contacted by MEDIAFAX, Tarom officials stated that, contrary to the letter negotiated by the Government with the IMF, “there is no court case in London” over the return of the third Boeing 737-800. Other information requested by the news agency would not be provided by the airline officials, who argued that it does not constitute public interest, as Tarom does business in a competitive environment.
Tarom, one of the companies monitored through the agreement with the IMF, expects to post losses of over 187 million lei (EUR41.88 million) this year. (EUR1=RON4.4646)