Alexandru Nazare, Romania’s Minister of Transport, has told the state-owned airline company Tarom to renegotiate the handling contract with Globe Ground Romania in the next two weeks. This measure is expected to reduce costs.

“Selling a 20 percent stake in Tarom by the end of June also means taking all the necessary decisions to make this company more attractive on the market. The diagnostic analysis of Tarom requires the renegotiation of the handling contract as a means of reducing costs and losses. You have two weeks to sign the contract,” Alexandru Nazare told Tarom’s officials.

The current handling contract between Tarom and Globe Ground Romania dates back to 2002. Globe Ground Romania offers handling services and was founded in 1992. The company is part of Servisair. In 2010, the company posted a turnover of EUR 17.8 million, and a profit of EUR 3.7 million, according to the data posted on the Ministry of Finance website.

Tarom’s privatization is part of the Romanian Government’s agreement with the International Monetary Fund (IMF). A consortium of Carpatica Invest and Swiss Capital will intermediate the listing of the 20 percent stake in the National Society of Romanian Air Transport Tarom SA on the Bucharest Stock Exchange (BVB).

The Romanian state also plans to sell share minority packages in Romgaz, Nuclearelectrica, OMV Petrom, CFR Marfa, and Hidroelectrica.

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