Romanian flag carrier TAROM posted losses of RON 172 million (EUR 38 million) in 2017, as the airline changed five general managers.
Last year was the tenth consecutive year when state-owned airline recorded loses.The negative result was over three times higher than in 2016 when the company saw losses of RON 47 million (some EUR 10 million).
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The company’s revenues also declined last year by some 4.5%, to RON 1.025 billion (EUR 220 million).
TAROM carried some 2.35 million passengers last year, ranking fourth among the airlines operating in Romania, behind low-cost operators Wizz Air, Blue Air and Ryanair. The company’s new management has implemented several recovery measures such as leasing two Boeing B737-800 aircraft and launching several new domestic and international routes.
Compania Națională de Transporturi Aeriene Române TAROM S.A., doing business as TAROM, is the flag carrier and oldest currently operating airline of Romania, based in Otopeni near Bucharest. Its headquarters and its main hub are at Henri Coandă International Airport. It is currently the second largest airline operating in Romania based on international destinations, international flights and the third largest measured by fleet size and passengers carried.
The brand name is an acronym for Romanian: Transporturile Aeriene Române (Romanian Air Transport). Over ninety-seven percent (97.05%) of TAROM is owned by the Romanian Government (Ministry of Transport).
After the collapse of the communist regime in 1989, the airline, operating a fleet of 65 aircraft of six basic types, was able to acquire more Western-built jets. By 1993, TAROM had introduced long-haul flights to Montreal and Bangkok using Ilyushin Il-62 and Airbus A310 aircraft.
During the 1990s, TAROM replaced its long-haul fleet of Boeing 707s and IL-62s with Airbus A310s (the last Il-62 being sold in 1999). In 2001, the airline cancelled its non-profitable long-haul services to Bangkok and Montreal and also terminated services to its remaining intercontinental destinations of Beijing in 2003, Chicago in 2002, and New York City in 2003.
TAROM terminated loss-making domestic services to Craiova, Tulcea, Caransebeș, and Constanța, and focused its activity on service to key destinations in Europe and the Middle East. 2004 was the first profitable year of the last decade.