August 23 (SeeNews) - Romanian transport minister Sorin Grindeanu said that flag carrier Tarom can be saved if it follows the restructuring plan agreed with the European Commission.
"Unfortunately,Tarom is not in a good economic situation. Nevertheless, we committed to a plan with the European Commission. Let's get on that path, this is a plan that gives Tarom a chance to be saved!," Sorin Grindeanu said in a live streamed news conference on Monday.
On August 18, Tarom announced that it plans to hold a strike starting August 23, demanding higher salaries. Thus, for two days a week, no Tarom plane will take off during 04:00 am - 07:00 am local time, according to a company announcement.
Grindeanu said that not all employees at Tarom should demand a pay rise, as some of them receive salaries similar to those in companies that are in a sound financial situation. "There is a need for solidarity of those in the company who have high incomes with those who are still paid the minimum wage," Grindeanu added.
In May 2021, Romania notified to the European Commission (EC) a 190 million euro ($190 million) plan for the restructuring of Tarom. The plan sets out a package of measures for streamlining Tarom's operations, renewing its ageing fleet and cutting costs. This support would take the form of a capital injection, a direct subsidy and a debt write-off of the rescue aid amount and its corresponding interest.
However, in June 2021, the EC opened an in-depth investigation to assess whether the government measures in support of Tarom would be compatible with EU rules on state aid.
Tarom, which employs some 1,115, booked a 400 million lei ($81.9 million/81.8 million euro) loss in 2021, while its revenues reached 960 million lei. Last year was Tarom's 14th straight year of loss.
($=0.9992 euro)