EU approves further COVID aid for Portuguese airline TAP -Breaking
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© Reuters. FILEPHOTO: On November 26th 2018, the first A330neo passenger airplane for TAP Air Portugal was seen at Airbus’ delivery center in Colomiers (near Toulouse), France. REUTERS/Regis DuvignauBRUSSELS, (Reuters) – The European Commission has approved a smaller, but still significant, aid package from Portugal for its flag carrier TAP. This follows the approval of a 2.55 million euro rescue plan this week.
TAP was damaged by COVID-19-related travel restrictions in the first half 2021. The Commission authorized 71.4 million euro ($80.9 Million) in state assistance to compensate TAP.
TAP Air Portugal was unable to fly due to these restrictions. It also suffered a sharp decline in its traffic and profitability during this time, according the Commission in a statement.
Aid will include a capital injection and a loan. According to the Commission, the amount of compensation was not more than necessary for the repair of the damages. The measure also did not violate EU antitrust laws.
This smaller amount of assistance comes after Brussels approved a comprehensive rescue plan Tuesday for the airline. However, it also imposed competition-limiting safeguards.
TAP is currently being restructured to 2.55 Billion Euros. The plan, which is 72.5% under the control of Portugal’s state, will result in thousands of jobs and pay cuts.
($1 = 0.8821 euros)
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