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TAROM targeting return to profitability in 2015, outlines measures to achieve target

28-Mar-2013 3:32 PM

TAROM CEO Christian Heinzmann forecast the carrier will return to profitability with RON92 million (EUR20.9 million) in profit in 2015 increasing to a profit of RON173 million (USD39.3 million) in 2016, according to a report from Bne. The carrier also plans to increase its passenger numbers to 2.6 million by 2016, up from the 2.3 million it expects to transport this year, and load factor of 75%, up from the 64% to 65% at present. In 2013, TAROM is forecasting a loss of RON143 million (EUR32.5 million), compared to previous forecast of a RON252 million (EUR57.3 million) loss, while losses in 2014 is estimated to reach RON18 million (EUR4.1 million). To achieve the carrier’s targets, Mr Heinzmann said the carrier will carry out several measures including introducing new marketing strategy and new route network, “renegotiate some slots so as to carry out only profitable flights.” Other measures include improving IT systems and introducing voluntary redundancy as it aims to cut its labour force by 10%. Mr Heinzmann believes the carrier should have about 1500 employees by 2015.