EC sees the ‘long term viability’ of TAP

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The European Commission has said it sees the long-term viability of the airline TAP and promised a decision this week on the restructuring plan.

“It has been very encouraging to see the restructuring plans that have been presented for TAP. I believe there is long term viability for the company, ”said Executive Vice President of the European Commission and Head of Competition, Margrethe Vestager.

During a press conference in Brussels on the new guidelines on state aid for climate, environment and energy, the official was asked about TAP’s restructuring plan and assured that the community executive “is working hard right now for a decision this week.”

“Public support for TAP is quite strong and, in order to mitigate the distortions of competition, TAP has also accepted some compromises,” said Margrethe Vestager.

The government handed over the TAP restructuring plan to the European Commission a year ago, having in the meantime implemented measures such as downsizing.

After the European Commission approved state aid of € 1,200 million to TAP on June 10, 2020, the company had six months to present a restructuring plan that convinced Brussels that the business has future viability.

In August this year, the European Commission admitted that it was concerned that TAP’s € 3,200 million restructuring aid would violate competition rules, a complaint that has been repeated by other airlines. such as Ryanair.

Brussels also said it doubts the € 3,200million support will ensure the company’s viability, despite acknowledging the importance of the Portuguese state in saving the air carrier.


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