There seems to be a change of thought as of what would be the the fastest and most effective way of cutting Tarom's deep losses in order to avoid Romania's National Air Carrier going down under. Would that imply a quick discount sale plus a decade long tax brakes to potential takers? Most likely 8)
According to an article published on July 02 2012 on a Romanian legal affair online-magazine "The Lawyer"
"... Gabriel Sidere, managing partner of CMS Cameron McKenna in Romania. “Apparently, the Minister of Transport is pushing for the sale of Tarom instead of the planned listing ... "
>>>>>>>>>>> BREAKING NEWS >>>>>>>>>>>>> AUG 08 2012
Romania's Transport Minister appointed Mr Sorin Georgescu as the new General Manager of Tarom Romanian. Mr Georgescu held various Sales and Marketing positions within Tarom organization since 1979. He is replacing Ms Gabriela Bordea who run the company beginning with April of 2011.
According to Romanian Financial Newspaper, Tarom incurred accumulated losses of 181 mil. euro for the last four years. At the same time, accordingly to sources associated with Romanian Finance Minister, the IPO listing tentative of 20 % of Tarom - convened earlier this year with IMF - may not happen this year due to weak market interest.
Accordingly to a Romanian Transportation State Secretary announcement, privatization process and private management recruitment at Tarom Romanian will continue. Scheduled initially for June this year, the selection process likely to be completed by the end of 2012. IMF agreed to delay the privatization process since there seem to be genuine interest from Asia and the Middle East so far.
After Heinrich Vystoupil – Tarom’s newly selected CEO - unexpectedly turned down Romanian Government’s four-years contract and stepped down from the board of directors, Minister of transportation is expected to go down the recruiters short-list again and select a new director. Only than, the board of directors should meet again and vote on the new CEO. It seems that the board of directors will decide on the airline's privatization strategy.
Romania’s new Government, emerged after Dec 9 2012 Parliamentary election, announced that is postponing the deadline on selling minority stakes in state controlled companies - including Romanian airline Tarom - until the end of 2013.