brussels-approves-tap-air-portugal-restructuring-plan

Brussels approves TAP Air Portugal restructuring plan

TAP Air Portugal will be able to count on aid from the Portuguese State of 2, 55 billion euros. In return, it will have to free up slots at Lisbon airport.

The European Commission announced on Tuesday that it had approved a restructuring plan for the airline TAP Air Portugal , with aid of 2, 55 billion euros from the Portuguese State, its main shareholder. Brussels has also given the green light to compensation of 107, 1 million euros for losses caused by the Covid pandemic – 19.

TAP’s approved restructuring plan will put the company on the path to long-term viability “, said the European Commissioner for Competition, Margrethe Vestager, quoted in a press release.

In exchange for the financial aid obtained, TAP had to undertake to free up slots at Lisbon airport as demanded its competitors, including the low-cost carrier Ryanair.

Emergency loan

The Portuguese national carrier, whose financial difficulties have increased with the health crisis, had received an emergency loan of 1.2 billion euros, which will now be converted into capital. Last December, it submitted a restructuring plan providing for a reduction of its workforce, lower wages and reduced its fleet.

The Commission said on Tuesday that the company should also separate from its subsidiary Portugalia and sell the shares it holds in several companies of the TAP group, including a subsidiary of ‘interview with headquarters in Brazil and Groundforce porter.