Director of Civil Aviation at the MT: TAROM’s privatisation was delayed; the company needs restructuring
The privatisaton process of the TAROM Romanian Airlines was delayed because the company needs restructuring first, the Director of the Civil Aviation Department at the Ministry of Transport, Catalin Radu, told an event devoted to civil aviation on Friday.
‘We adopted this strategy, to delay it (privatisation, editor’s note), because we are trying to put on the market more valuable shares. TAROM needs first to be brought in a better shape to look more attractive for investors and with its business plan already in place, prepared by a feasible management’, said Catalin Radu.
The plan proposed by the management for 2015 for the privatisation of TAROM to give more time to the company for restructuring and regain its market position.
‘We need to focus on what’s more interesting to us, as a national company. Right now, besides the competition on the European market we have to consider also the companies in the Gulf, the Asian area, which have a different business model, with the state getting involved, as aviation is considered a strategic element for the development of the economy. In this context we cannot talk of a free competition as the states gets more and more involved in financing and developing the business of aviation […] We always have in front of us the possibility to privatise and make changes in the structure of a company. In general, we seek to find the best modality of making the company more profitable and more useful and we need to look also to the European experience in privatisation – we have examples that not always the companies managed to become successful’, the representatives of the Ministry of Transport said.
The Ministry of Transport, the International Air Transport Association (IATA) and TAROM on Friday organised in Bucharest the Eastern European Aviation Day, an event attended my more than 150 representatives in the field that were analyzing problems and consider ideas for the development of the aviation sector in the region.