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New TAROM managers want same kind of planes, possible contract with Mitsubishi and profit in 2016

TAROM company might have a contract with an important firm on the field from Boeing , Airbus to Mitsubishi in 2014 for an exchange of old airplanes with new ones of the same kind. So the company will become profitable again in 2016 and even earlier, the new general manager of the company, Christian Edouard Heinzmann told the press.

 

He declared that TAROM will standardize its fleet and will be equipped with a plane belonging to the same aircraft manufacturer, considering that TAROM has now Airbus, Boeing and ATR planes.

On Thursday, transport minister Relu Fenechiu had declared that TAROM might buy or rent aircraft in order to cope with a competition market. Heinzmann pointed out that a standardization of company planes could lead to savings of 30% just from fuel expenses.

 

The new CEO said the company management plan would have in view the renegotiation of contracts considered harmful for the company. “Now we are renegotiating 30-40 contracts of the company, from those with OMV and BP to contracts with Alpha Rocas for catering and Globe Ground for ground services, to contracts for the ticketing system, which is rather expensive. I think that by renegotiating we will save a few million euro. We n=might also renegotiate the affiliation to SkyTeam or IATA because we have to make a benefit cost/opportunity. If we leave SkyTeam we have to pay 3.5 million euro”, Heinzmann explained.

 

He added that TAROM will renegotiate some contracts for company headquarters in important cities like Paris and London. At the same time new flights will be introduced via Prague as well as via Iasi, London or Paris. Brussels is now the most profitable TAROM flight.“Paris Agency has an annual rent of 8,000 euro and a rent contract for 9 years. These are important amounts of money we will try to give up. We will also increase the aircraft use degree which is about 8 hours a day, but the preparation of a plane from one flight to the other is 3 hours, when it should be no more than 45 minutes,” the company CEO declared.

 

At the same time the new management said the number of employees – 2,150 persons – is rather high and there will be personnel cuts in the future.

 

Christian Edouard Heinzmann has been TAROM CEO since 19 November 2012, with a four year contract. The Administration Board include Michael Moriarty Chief Financial Officer, Ciprian Lunca, Marius Ghenea, Lucian Osar, Valentin Macec and Dan Pascariu, chairman of the board.

TAROM was set up in 1954 and carries out its activity under the authority of the Ministry of Transport and Infrastructure. TAROM is a member of the Sky Team Alliance since 2010, a member of IATA since 1993 and of AEA since 2000.

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