Private management had been introduced at Tarom in November last year and last week the Transport Ministry, Tarom’s shareholder, ousted the state-run company’s Board of Directors and appointed a new one. The reason given for the ousting was that the Board of Directors had breached the company’ articles of incorporation by cutting the term in office of CEO Christian Heinzmann from 4 years to one year.
“You cannot change the Board of Directors without ensuring continuity with people who know the aviation business and the company’s history.
Demetriade was Tarom’s CEO for two years from 2001 to 2002.
“Tarom was not ready for the implementation of the private management ordinance, it was a mistake to start with Tarom. If this had been done right, we wouldn’t be talking about these problems right now,” Demetriade told ZF Live.
Nicolae Demetriade also said that when he took over as CEO of Tarom in 200 the company had no money left in its accounts, it had debts of $52 million and losses of $68 million. After two years he managed to pay all the debts, cut losses to $29 million and leave $47 million in cash in the company’s accounts.
In 2008 Tarom was one of the most solid European airlines financially, its cash was higher than its turnover.
“As of 2008 disastrous management decisions emerged. In 5 years the company lost almost $300 million without anyone asking what is going on,” Demetriade says.
(English version by Daniela Stoican)