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.

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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.

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