Romanian airline Tarom sets up maintenance and repair services company
Romanian national airline Tarom announced the establishment of a new company, Tarom Tehnic, dedicated to providing maintenance and repair services for civilian aircraft, specializing in Boeing, Airbus, and ATR models.
The new company is expected to generate revenues of up to EUR 10 million in its first year of operation, according to estimates from the state-owned air carrier.
“The new company, fully owned by Tarom, will continue the tradition and expertise of the former Tarom Technical Directorate teams. Through this strategic transformation, Tarom addresses the need for modernization and operational efficiency while meeting the demands of an expanded client market, including international airlines and cargo operators,” the company announced, according to News.ro.
On April 29, 2024, the European Commission approved a restructuring aid of EUR 95.3 million. The new company is part of Tarom's restructuring plan, essential for meeting the conditions imposed by the EC for state aid approval.
“The transformation of Tarom through the implementation of the restructuring plan agreed upon with the European Commission has led to improved financial results in 2024. After recording significant annual losses over the past eight years, the company reduced losses to less than one-third in 2023, and for 2024 it forecasts a return to positive results,” the company further announced.
Tarom notes that other European airlines such as Germany’s Lufthansa benefited from similar state support in the past.
The new company, projected to grow to revenues of EUR 30-35 million over the next 3-5 years, will address a highly dynamic segment of the European aviation market, namely commercial and cargo aircraft maintenance. Multi-brand certifications and capabilities (Boeing, Airbus, and ATR) will be an advantage over key competitors in the segment, the company says.
“This new entity not only leverages the technical expertise accumulated over the years but also opens doors to new markets, offering competitive services internationally. It is an opportunity to demonstrate that Tarom can be a regional leader in aircraft maintenance, thus contributing to the development of civil aviation in Romania,” said Costin Iordache, Tarom’s General Director.
The new company will have roughly 300 employees from Tarom's current Technical Directorate. At the same time, new jobs will be created.
To ensure stability and continuity of activities, Tarom Tehnic will sign a maintenance and repair contract with Tarom to provide technical services for the entire fleet. The new company intends to approach all airlines operating flights at Otopeni Airport to sign maintenance contracts covering line and hangar maintenance operations.
Tarom's restructuring began in October of last year and included the selling of aircraft and the closure of ticket offices in several cities.
(Photo source: Cateyeperspective | Dreamstime.com)
