Tarom Romanian Airlines is closing in on a union agreement to restructure the carrier after the government revamped its senior management again last year.
Gheorge Racaru has been reappointed as managing director after being sacked from the position in mid-1996 after succumbing to union opposition for his plans to axe 1,000 jobs.
Racaru, a Tarom pilot, replaces Marian Serbanescu who was sacked in November. Serbanescu replaced the union-supported MD, Dan Vulcan, in August 1996 but fell out with the government after Tarom cancelled a flight carrying a government trade mission. The airline said the aircraft was overloaded with baggage.
The new management faces the task of pushing through job cuts and rationalising the carrier's fleet to secure government support for fleet renewal. 'At the beginning Racaru's appointment was seen as a source of increasing conflict with the unions but [they] have suddenly accepted the restructuring programme,' says a Tarom source.
Although the Ministry of Transport is to fund pre-delivery payments on six B737-800s, Tarom needs a government guarantee to secure support for the order. 'The government said Tarom would receive no money until it agreed to fire 50 per cent of its staff,' adds the source. Tarom employs 3,500 staff, half of whom are in technical functions, although most of its 60 Soviet aircraft are unserviceable.
Tarom's strategic direction still remains unclear. 'Tarom should follow Malev, which has looked to the east and done well by not competing with western carriers,' notes one airline analyst.
Doug Cameron
Source: Airline Business
