Savings of over 1 million dollars annually at TAROM

TAROM renegotiates contracts with suppliers

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Christian Heinzmann, the chief executive officer of TAROM, renegotiated during the first two months of the year a number of 12 contracts with various suppliers of the company, obtaining at each contract discounts of 5% to 10%, or even more in some cases.

tarom

By renegotiating the 12 contracts, costs of over one million dollars were saved annually. The management of TAROM will renegotiate more than 40 of contracts with existing suppliers, renegotiations that will take place in the coming months.

It's a good step by TAROM, but not enough. The annual losses are in the order of tens of millions of euros, so there are still many steps to be taken to profitability. I believe that TAROM can be a profitable airline operator, but it has to be worked on image, fleet, operational network efficiency and even personnel.

2 Comments
  1. […] The contracts with suppliers have also been renegotiated over 40. [...]

  2. [...] the company has already obtained discounts of 5% up to 10% in the case of 12 contracts, generating cost reductions of approximately one million USD annually. Renegotiations with the rest of the company's suppliers will continue in the following […]

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