The Romanian air carrier Tarom estimates losses of RON 230 mln this year, half of those reported in 2020, while its revenues will nearly double from 2020 to RON 1.19 bln, according to a draft order of the Minister of Transport for the approval of the company's budget planning for 2021, quoted by News.ro.

The company would turn to positive cash flow and would reach operational break-even in 2024.

The financing need for 2020 was partially covered by the treasury loan granted in the form of rescue aid, amounting to RON 175.6 mln and by the loan accessed by the company from Banca Transilvania amounting to EUR 19.3 mln, guaranteed by the Romanian state through the Ministry of Finance (for which the company guaranteed with fixed assets).

Tarom drafted a restructuring plan which was approved by the Board of Directors and by the General Meeting of Shareholders in August 2020.

It was sent to the European Commission in August 2020.

The total costs associated with the restructuring measures will be up to RON 1.84 bln (some EUR 380.3 mln) which will include the company's 50% contribution and state aid for restructuring, of maximum RON 923.6 mln (EUR 190.8 mln), Adevarul reported.

The state aid includes the RON 175.6 mln (EUR 36.7 mln) rescue aid already approved by EC and extended, to be later transformed into restructuring aid upon EC's approval based on successful restructuring.

(Photo: Colicaranica/ Dreamstime)

andrei@romania-insider.com