Romanian State-Owned Airline Tarom Expects To Break Even In 2011

Romanian state-owned airline Tarom wants to break even in 2011, after its 2010 budget provided for a 19.8 million lei (EUR1=RON4.2621) profit, according to a draft government decision by the Ministry of Transport.

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In 2009, Tarom projected a RON760,000 profit, but the net result was a RON90.99 million loss.

The company's revenue and expenses this year will be equal, at RON1.71 billion. Last year, the airline's budget provided for RON1.65 billion in revenue and RON1.63 billion in expenses.

Staff expenses are to drop by 10.9%, to RON183.98 million, while the salary fund will shrink by 10.2%, to RON133.77 million. The average monthly income per employee will decrease to RON4,723 from RON5,063, while the average number of employees will be reduced by 90, to 2,360.

Tarom will be allotted RON138.27 million for investments, down 64.2% from last year's RON386.45 million. Its advertising budget will be RON13.03 million.

The company has debts of RON20.7 million and receivables of RON36 million.

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