Tarom business up 20% in H1, while costs are expected to double

The company’s spokesman, Madalin Tudor, said the company had 900,000 passengers in H1, some 16 percent more than in the first half of 2007.

Meanwhile, the company’s costs will double due to higher fuel prices. “Current fuel prices make up some 35-40 percent of the total expenses,” Tudor said.

Tarom is looking for new ways to control costs during the international oil market crisis, such as acquiring new aircraft with lower kerosene consumption or renting planes, according to Tudor. Market sources say the company is interested in acquiring several Boeing 737-800 Next Generation planes, a model recently purchased by low-cost Blue Air. This model has a longer flight capacity, lower consumption and carbon emissions.

Tarom’s fleet currently includes eight Boeing 737 planes, seven ATR 42-500, four Airbus 318-100 and two Airbus 310-325.

For this year, the company’s investment budget amounts to some €13.7 million for maintenance equipment, hardware and software products, and acquisition of a building to become Tarom’s headquarters.