The airline informs in a press release that TAROM is introducing special offers on the Bucharest—Chisinau route as part of its tourism promotion partnership with the National Tourism Office and the Employers’ Association of the Tourism Industry of the Republic of Moldova.

TAROM passengers benefit from exclusive offers and discounts at some of the most representative tourist destinations in the Republic of Moldova, based on the boarding pass.

Thus, at Mileștii Mici, the discount is 15% for the tourist packages of the Mileștii Mici Winery. The winery has the most extensive collection of wines in the world, and it was included in the Guinness Book of Records in 2005. The unique collection of wines is preserved in 55-km-long stone galleries.

The TAROM company has a consistent representation in the Republic of Moldova and actively supports local tourism through the agency in Chisinau.

Through direct connections and daily flights from seven important cities in Romania – Cluj-Napoca, Iași, Oradea, Satu Mare, Suceava, Timișoara and Baia Mare – TAROM ensures fast and convenient access for tens of thousands of Romanian and international tourists to Bucharest and then to Chisinau, through the 21 weekly flights’ the release states.

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TAROM Pilots Silent Strike Began on Sunday Evening

The strike began late Sunday, with over 20 pilots and co-pilots declaring themselves “unfit to fly.” This action led TAROM to describe the situation as “unprecedented,” though it stopped short of acknowledging the strike publicly. Information about the strike has primarily circulated through unofficial channels, leaving passengers and stakeholders in the dark.

The company officially announced that some flights from July 8, 2024, will be cancelled due to the temporary unavailability of crew members. Under international aviation regulations and strict domestic flight safety policies, each flight was cancelled because a crew member of each aircraft was declared “unfit to fly.” Individual pilot decisions were made following applicable regulations to ensure the safety and comfort of passengers and crew.

The flights cancelled so far are ROT101/2 Otopeni – Cairo – Otopeni, ROT167/8 Otopeni – Beyrut – Otopeni, ROT187/8 Otopeni – Amman-Otopeni, ROT701/2 Otopeni – Iasi – Otopeni, ROT621/2 – Otopeni – Oradea – Otopeni, ROT261/2 – Otopeni – Istanbul -Otopeni, ROT231/2 – Otopeni – Budapest – Otopeni, ROT 301/2 – Otopeni – Frankfurt – Otopeni, ROT361/2 – Otopeni – Amsterdam – Otopeni, ROT 381/2 – Otopeni – Paris – Otopeni, ROT 415/6 -Otopeni – Madrid– Otopeni, ROT 291/2 – Otopeni – Sofia – Otopeni, ROT 643/4 – Otopeni – Cluj – Otopeni, ROT 703/4 – Otopeni – Iasi – Otopeni, ROT 211 /2 – Otopeni – Belgrade – Otopeni, ROT 627/8 – Otopeni – Oradea – Otopeni, ROT 383/4 – Otopeni – Paris– Otopeni, ROT 237/8 – Otopeni – Budapest – Otopeni, ROT 363/4 – Otopeni – Amsterdam – Otopeni, ROT 305/6 – Otopeni – Frankfurt – Otopeni, ROT 607/8 – Otopeni – Timisoara – Otopeni.

On Monday, July 8, TAROM announced other flights cancelled: ROT 211/2 – Otopeni – Belgrade – Otopeni, ROT 627/8 – Otopeni – Oradea – Otopeni, ROT 383/4 – Otopeni – Paris– Otopeni, ROT 237/8 – Otopeni – Budapest – Otopeni, ROT 363 /4 – Otopeni – Amsterdam – Otopeni, ROT 305/6 – Otopeni – Frankfurt – Otopeni, ROT 607/8 – Otopeni – Timisoara – Otopeni

Wage Disparities Is the Cause of Pilot’s Unfitness

At the heart of the strike are significant wage concerns. Currently, TAROM pilots earn a salary of 6,000 euros net per month, while co-pilots earn between 2,000 and 3,000 euros. Despite these figures, TAROM salaries are roughly half of those other airlines offer, highlighting a competitive disadvantage in attracting and retaining talent.

Broader Workforce Discontent

The strike by flight crew members is part of a larger narrative of dissatisfaction among TAROM employees. Union leader Narcis Pascu has been vocal about the lack of wage increases, noting that the last salary hike occurred in 2007. Many TAROM employees, particularly those not involved in flight operations, continue to earn minimum wage, exacerbating workplace dissatisfaction.

TAROM’s Financial Struggles and Management Instability

TAROM’s financial woes further complicate the situation. The airline last posted a profit in 2007 and has since relied on state aid, including a recent injection of around 100 million euros. Compounding these issues is a revolving door of leadership; the airline has seen 18 general directors in the past 11 years, contributing to its instability and lack of strategic direction.

The strike by TAROM’s pilots and co-pilots is a symptom of deeper issues within the airline, including wage disparities, broader employee discontent, financial instability, and leadership challenges. As the airline grapples with these problems, finding a sustainable resolution to employee grievances will be crucial for its future stability and success.

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Romania’s Minister of Transport, Sorin Grindeanu, announces that state aid worth 471.04 million lei (approx EUR 94.4) for TAROM has been approved. Through this aid, TAROM will undergo an extensive transformation and could return to profit as early as 2024. For the last decade, TAROM has been a loss-making company.

This aid, worth 471.04 million lei, is granted based on a decision issued by the European Commission on April 29, 2024.

The allocated amount has the following destinations:

• up to 214.3 million lei represents restructuring aid that is proposed to be granted in the form of capitalization in 2024;
• 12.51 million lei represents the share capital increase carried out in 2023;

TAROM will use the 214.3 million lei (for working capital) to cover the liquidity deficit and the financial balancing of the company in 2024. These operations will create the context of the company’s profitability and its transition to profit as early as 2024.

The European Commission approved, at the end of April, under EU state aid rules, Romania’s plans to grant the state-owned national air carrier, TAROM, restructuring aid worth up to 95.3 million euros (473.69 million lei). The measure will allow the company to restore its long-term viability while minimizing distortions of competition.

On May 28, 2021, Romania notified the Commission of a plan to restructure the company Tarom. The restructuring plan sets out measures to streamline Tarom’s operations, renew its aging fleet and cut costs.

The restructuring measures include the following: cancellation of debt of approximately EUR 49.53 million (246.19 million lei) corresponding to the value of the rescue aid, approved by the Commission in February 2020, plus related interest; and a capital injection of approximately 45.77 million euros (227.50 million lei).

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In a short time, the TAROM company is planning to complete the flight routes to other destinations in the USA to increase the flight frequencies and the tariff offers.

The starting prices for round-trip flights, at EUR 608 for New York and EUR 785 for Miami, including hand luggage, a checked bag of 23 kg, and applicable taxes, offer a clear value proposition for travellers. This structured fare system provides transparency and could appeal to many passengers, from business travellers to tourists, looking for comprehensive travel packages that include essential baggage needs.

The strategic partnerships with airlines within the Sky Team alliance expand Tarom’s reach and enhance its operational capabilities, allowing it to offer competitive services despite fleet limitations. This approach reflects a broader trend in the airline industry, where alliances and partnerships are increasingly leveraged to broaden network connectivity, improve customer service, and offer competitive pricing structures to passengers.

The Statue of Liberty, Times Square and Miami Beach are now closer than ever to business or tourist travel plans for Romanians.

Those who have always dreamed of a walk on the spectacular 5th Avenue in New York or a getaway on the sunny beaches of Miami can mark their agenda with the transport service and the main sights at highly affordable prices.

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Our mission is to connect people and safely transport them to their destinations. The atmosphere I felt in the passenger cabin on the flight from Tel Aviv on January 1st spoke to me about resilience and strengthened my faith in the power of every human being to contribute to what we all want and need – peace and harmony. This flight is another step towards normality.

Cătălin Prunariu, the Flight Director of TAROM

The company proposes operating two weekly frequencies (return flights) starting January 14. This activity, however, requires risk analyses applied to each race, careful monitoring of the situation in Israel and close communication with the Israeli authorities to stabilize the operation. Currently, depending on the conclusions of the analyses that will be applied to each race, there may be changes in operation.

Together with the representatives of the state, its pilots and the operational teams, after the outbreak of the conflict in Israel, TAROM operated 11 flights to Israel that benefited 2635 people. With the resumption of regular flights to Israel, people interested in purchasing tickets and making flights are urged to monitor constantly, from official TAROM sources, both the availability of seats in aircraft (depending on the situation, adjustments can be made to the size/model of the aircraft with which flights are made, respectively of available seats), as well as information related to the viability of the flights themselves (following continuous monitoring, some flights may be cancelled).

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The decision came after the pandemic hit hard the airline industry worldwide, including Romania, but also other countries. Operators from other European countries found themselves in trouble as well and some even filed for bankruptcy.

Recently, the Czech airliner filed for bankruptcy, following the lay-off of the personnel. The Czech operator has debts to more than 266 creditors, mostly suppliers, and 230,000 passengers who are awaiting refunds for canceled flights. The total debts equal $82 million, but the financial burden is too much for any operator from the industry.

TAROM is currently undergoing a restructuring process, approved by the European Commission. The plan mentions the lay-off of 700 from almost 1,500 employees. On the other hand, both major Romanian airline companies, TAROM and Blue Air, are to receive 124 million EUR in state guaranteed loans.

A list of all the airliners in trouble because of the pandemic shows tens of companies who filed for bankruptcy, entered a reorganization procedure or laid-off most of their staff.

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The measure was asked by the European Commission when it agreed to approve TAROM a state-guaranteed loan. In fact, both Romanian airliners, TAROM and Blue Air, are to get 64 and 60 million EUR, respectively, in state-guaranteed loans.

In July last year, the Romanian minister of Transport expressed his concerns regarding the necessity of an immediate initiation of the restructuring process:

The restructuring plan is mandatory. It is the last chance to use this opportunity to clean this company. We have 25 employees for each airplane, more than the average of the airline companies across the world. We have a manager for 9 employees, which is not right. There are 192 managers in the company.

Romanian minister of Transport, July 2020, on TAROM restructuring

TAROM has 192 managers and more than 1,900 employees, but that doesn’t mean all these managers and executive staff are indispensable to the company. In fact, by looking at the company’s profit and loss, we can notice the involution of the company’s profit rate over the last 13 years.

2007 was the last year when TAROM was on profit. In 2019 the company had a loss of more than 36 million EUR. Of course, 8 million EUR means a lot, if the company will succeed in its restructuring attempt and save this sum after the lay-offs. But still, TAROM needs to get back on profit by getting more clients, by more attractive offers, by cutting unnecessary bonuses for the management and by avoiding unnecessary expenditures. And for that, the restructuring of the personnel is not enough.

TAROM has the potential of recovering from this very difficult period. Before pandemic, TAROM used to fly safely to the destinations almost 3 million passengers a year. It’s clear those days are long gone, but with a proper management, with attractive offers and with courage for taking the necessary measures, TAROM could get back on profit sooner than any prediction.

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