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Romania's Tarom H1 net loss deepens to 104 mln lei (23 mln euro)

Romania's Tarom H1 net loss deepens to 104 mln lei (23 mln euro) Tarom

BUCHAREST (Romania), August 17 (SeeNews) - Romanian flag carrier Tarom's net loss widened to 104 million lei ($27 million/23 million euro) in the first half of 2017 from 28.6 million lei in the like period of last year, exceeding by far the transport ministry's estimates.

Earlier this year, the transport ministry said it expected that Tarom would close 2017 with a 41.2 million lei loss, 12% narrower compared to 2016.

Tarom's turnover fell 14% on the year to 444.2 million lei in the six months through June, the company said in an interim financial statement on Wednesday.

Expenses decreased to 610 million lei at end-June from 612 million lei at end-June 2016.

In 2016, the company posted a 47 million lei loss, marking its ninth straight non-profitable year. The company tried to mend the situation in March last year, when it fired Tarom's CEO Christian Heinzmann due to unjustified losses posted by the company and too many sick leave days taken by its staff.

Starting February 2017, Tarom has a new CEO, Eugen Davidoiu, who took over from Dan Plaveti, the interim CEO that filled up for Heinzmann.

At the beginning of August, Tarom announced that it has launched a tender to lease three long-haul aircraft manufactured not before 2012.

In May, Tarom signed a contract for a ten-year lease of two series 800 NG new Boeing aircraft of 189 seats each after it had to ground two old Airbus A310 in September 2016. The two grounded aircraft represented one fifth of Tarom fleet's capacity, leaving the company unable to service all of its scheduled flights.

(1 euro =4.5737 lei)

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