Last Tuesday (23), the CEO of TAP Air Portugal, Antonaldo Neves, declared that it is possible to submit the approval of the European Union Commission, a plan for the restructuring of the Portuguese company, in order to prevent the airline from having to reimburse the Portuguese government for the bailout. According to the Reuters, the Portuguese airline is confident that the plan will be approved by the European Commission.
On June 10, the European Commission authorized the Portuguese government to make up to 1.2 billion euros available to TAP, in the form of credit lines. However, the company will have six months to rethink its structure.
In this context, government assistance can be granted for a maximum period of six months so that the company has time to find solutions to the crisis. In particular, the Portuguese authorities say that TAP has committed to reimburse the amount contributed or to present a robust restructuring plan to guarantee its future viability. The company’s bet is on the second scenario.
Last week, the Secretary of State for the Treasury of Portugal, Miguel Cruz, had already asked the airline to present a strategic plan “with speed”. The State prepared the notification to the European Commission, in the record time of about three weeks, and it is now up to the company to present its strategic plan, said the Secretary in audience of the Portuguese Parliament’s Budget and Finance Committee.
Antonoaldo Neves told a parliamentary committee that he believes it is possible to send the European Commission an acceptable restructuring plan, as he believes that TAP has a viable business model, reports Reuters. “TAP has new aircraft, an extraordinary team,” added Neves. “Now it will be a long and difficult recovery.”
TAP tried to resume some of its international operations last month, since the measures to restrict mobility began to be suspended, but due to low demand, the company decided to take a step back.
“It is very difficult to predict the demand that we will have in the coming months,” said Neves. “We made a process in which we made flights and removed flights, testing the market demand”.
Privatized by 61% in 2015, TAP saw the Portuguese State increase its stake to 50% of the capital in 2016. The private consortium Atlantic Gateway, owned by Brazilian-American businessman David Neeleman, and its Portuguese partner Humberto Pedrosa, now holds a stake of 45%, and the remaining 5% belong to employees.
–
