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December 10, 2023
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Business Romanian News

65% of the Romanian State Owned Airliner TAROM Personnel to Enter Technical Unemployment Procedure

According to sources, 65% of the Romanian state owned airliner TAROM personnel is going to enter technical unemployment at the beginning of April.

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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