On Tuesday 21 December, the European Commission authorised two Portuguese State aid measures in favour of the TAP group.
These are: - €2.55 billion in restructuring aid to restore the viability of Transportes Aéreos Portugueses SGPS S.A. (‘TAP SGPS’) and the airline TAP Air Portugal ; - €107.1 million to compensate TAP Air Portugal for damages resulting from the effects of the coronavirus pandemic between 1 July and 30 December 2020.
For Margrethe Vestager, Executive Vice-President in charge of Competition Policy, TAP’s restructuring plan as approved “will ensure the airline’s path towards long-term viability. This considerable public support will be accompanied by guarantees to limit distortions of competition”.
The support will take the form of equity and quasi-equity injections of €2.55 billion, including the conversion of the €1.2 billion rescue loan into equity.
TAP Air Portugal will cede up to 18 daily slots at Lisbon airport to a competing carrier, allowing for the lasting entry or expansion of a competing carrier at this airport. A transparent and non-discriminatory selection procedure will be organized by the Commission to select the competing carrier. The first call for proposals will take place before the IATA 2022/2023 winter season. (Original version in French by Lionel Changeur)