TAROM privatisation set for June after assessment due in March

Published: 2/23/2000

Global aviation consultants, Simat, Helliesen & Eichner, working alongside Dutch investment bank ABN Amro, on the privatisation of Romanian flag carrier, TAROM, are reportedly faced with the challenge of meeting a four month deadline. The consultancy is due to deliver an assessment of the airline by the middle of March, although Christine Moore of ABN Amro has already commented that the airline will need to change its business mentality from “national pride” to profitability in the running of its route network. Meanwhile, the Bucharest commodities exchange recently announced a tender to dispose of a number of the airline's aircraft, with the sale of three An-24s and one BAC 1-11 planned for 7th March; the deadline for bids being 6th March. The range of prices for the aircraft is $65-75,000 for the An-24 and $750,000 for the BAC 1-11. If there are no successful bids the aircraft will be re-offered for sale on 14th and 21st of March. On 15th March, the airline will also sell five Tu-154s. The reported price of $8000, however, appears low. Associated article: www.concise.org. 5th February 2000

Article ID: 1466