Former members of Tarom’s board of directors, fired by the Ministry of Transport in November last year, have taken legal action against the company for unjust dismissal, asking for their rights under the mandate contract.

“The legal proceedings against the company were filed, to demonstrate the unjust dismissal. Therefore, according to the mandate contract, damages are to be requested,” Dan Pascariu, former president of Tarom’s board of directors, told local news agency Mediafax.

Moreover, the former directors will also ask for the unpaid bonuses, according to the source.

The total amounts requested by each of the five former directors could go up to EUR 100,000.

Romania’s Transport Ministry fired the entire board of directors at state-owned airline Tarom in November last year. The board was led by Romanian banker Dan Pascariu.

The new board is currently made of Dante Stein, former counselor of the Romanian Prime Minister, Manuel Donescu, state secretary within the Transport ministry, Florin Luca, banking strategy consultant, Bogdan Speteanu, general manager of BCR Leasing and Razvan Filipescu, president of the National Tourism Authority.

Tarom managed to narrow its losses by a third during the first nine months of 2013, to some EUR 18.4 million. The loss recorded at nine months was 13 percent below the management’s plan.

The company’s turnover was up just one percent, to some EUR 216 million. The company managed to up sales and decrease losses while it carried fewer passengers than during the first nine months of 2012.

Irina Popescu, irina.popescu@romania-insider.com