The Portuguese government has submitted a notification to the European Commission that it wants to provide €463 million to TAP Air Portugal as an ‘interim financial support’ while the airline’s restructuring plan is considered.
Brussels is unlikely to authorise the restructuring plan before next month. In the meantime, TAP ‘cannot meet its running costs’.
The airline already benefited from state aid of €1.2 billion in June 2020.
TAP is currently running at 10% of last year’s capacity. In February the level of operations was even lower.
Meantime, the Ministry of Infrastructures has stressed that, if new funding is authorised, it will correspondingly envisage major cuts to overall expenditure and drastic staff reductions.
Source: Portugal Resident