TAROM national airline's United Trade Union is requesting the government to exempt the company from the application of the provisions of Law 296/2023 on tax and budget measures because those measures "will place the company at a competitive disadvantage in relation to private airlines, in a fierce and completely liberalised competitive environment."
According to the unionists, the application of the law would generate major negative implications on ensuring the continuity in safe conditions of TAROM's air transport services and will lead to a negative social impact on its own employees.
"The provisions of the law would establish restrictive conditions for TAROM, of the nature of putting the company at a competitive disadvantage, because they will lead to the creation of a non-competitive operating framework in relation to private operators in the field, in a fierce competitive environment and completely liberalised in terms of access to the market of air transport services and tariff policies, arresting development and widening an already existing deficit of specialist staff at the company, preventing the employment or maintenance of highly specialised staff through attractive salary packages in relation to the offer on the labour market and the flexible management of the pay budget to suit the operating needs and accommodate fluctuations in commercial aviation employment," the unionists say in an open letter to Romania's Prime Minister Marcel Ciolacu.
At the same time, they claim that such restrictions will "limit the executive management to adapt the organisational structure for the speedy implementation of certain civil aviation international regulations due to bureaucracy and budget limitations that are imposed in the case public entities funded predominantly or entirely from own revenues, but they are not specific to enterprises from which efficiency and competitiveness are expected."
According to them, TAROM is an entirely self-funded government-owned enterprise operating in a competitive, constantly changing market. Thus, the restrictions imposed by the provisions of the law, which can be explained in the case of some government-run enterprises operating in a non-competitive market, will prevent the efficient running of business in the case of TAROM.
Also, the implementation by TAROM of these provisions would jeopardise the restructuring programme carried out by TAROM notified to the European Commission.
TAROM was established in 1954 and has grown at the same time with the Romanian aviation. It operates under the authority of the Ministry of Transport. It became a member of the SkyTeam Alliance on June 25, 2010.
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