Cab company Fly Taxi files for insolvency

Fly Taxi, the cab company owned by businessman Fernando Enciu, has filed an insolvency demand at the Bucharest Court, which is to be ruled upon on June 28. This year, the firm lost its exclusive and highly publicized contract with Otopeni airport, awarded in 2004. At the end of March, Fly Taxi had reportedly suffered RON 150,000 in losses.

The cab firm’s exclusive Otopeni airport deal generated a great deal of controversy at the time. According to media reports not all taxi companies were invited to the auction in 2004, an omission attributed to Miron Mitrea, ministry of transport at the time.

Fly Taxi charges RON 3 per kilometer, almost double the rates of other Romanian taxi companies. Last year, under the firm’s monopoly, a trip from Otopeni airport could reportedly reach as much as RON 100, due to a RON 3.5 tariff per kilometer, if the driver did not switch to the lower rate when reaching the urban zone.

Before declaring insolvency, a new taxi company was created on June 3, Fly Taxi Business, of which Carmen Mihaela Enciu is the sole associate. According to other players on the taxi transportation market, creating a new company with the same activity range as an insolvent company, with which it is to later merger, is a common practice.

Fly Taxi, established in 2003, is a Romanian company with entirely private capital that provides personal transportation services in the taxi system. In 2008, it registered a turnover of RON 8.42 million and a loss of RON 381,000, after reporting a profit of 542,000 in 2007. It has 128 employees.

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Corina Dumitrescu