Considering the situation, the company’s Executive Board asked Heinzmann to agree to have his mandate reduced from four to one year.
According to Pascariu, Heinzmann has employed 40 new people, failing to comply with a Board decision to freeze hiring.
Heinzmann told Ziarul Financiar in June he signed a new contract and would remain at the helm of the company until November.
“Had I not signed the contract, I would have been fired,” Heinzmann said back then.
After shortening Heinzmann’s mandate as general manager, Tarom appointed Nicolae Demetriade as chief executive officer.
Tarom registered loss of 66 million lei (EUR14.8 million) in the first four months of the year, lower by RON30 million compared to the loss estimated in the management plan. The company registered unaudited loss of RON236 million last year.
The management plan, approved by the Executive Board in March, states loss of RON143 million this year and of RON18 million in 2014. Tarom is expected to switch to profit of RON92 million in 2015 and of RON173 million in 2016.
The airline started a voluntary leave program in March, aiming at downsizing staff by 10% by the end of the year.
Tarom is controlled by the Transport Ministry, which selected in July 2012 the consortium PwC/D&B David and Baias/George Butunoiu to recruit private general managers and managing board members for the companies under its authority with turnovers higher than EUR7.3 million.
Tarom’s Board includes Pascariu (also president of the Supervisory Board of UniCredit Tiriac Bank), former astronaut Dumitru Prunariu, businessman Marius Ghenea, Valentin Macec (former adviser to ex-Transport minister Ovidiu Silaghi) and Ciprian Ladunca (CFO of insurer Alico).
Under standing agreements with the IMF and the EC, Romania’s Government has pledged to appoint private management at 48 state-owned companies. Tarom was the first state company which implemented private management. (EUR1=RON4.4514)