Portuguese PAP competes globally on a hard rescue plan, - Minister

Portuguese PAP competes globally on a hard rescue plan, - Minister ...

The Portugali government said the country's flag carrier TAP will be able to compete on a global scale but is also in need of partners following the vast restructuring imposed by a Brussels-approved rescue plan worth 3,3 milliard euro.

In the past six months, EU antitrust authorities have been examining whether the plan, which involves thousands of jobs and pay cuts, is proportionate and complies with state aid rules, and if it affects competition.

The Commission approved that on Tuesday, but took measures to limit competition distortion.

"TAP will profit, and withstand the world's frightened, " said last Tuesday.

But he warned that the airline, which is 72,5 percent controlled by the Portuguese government, won't "overvive alone" and must look for partners.

The government is now allowing the airline to inject 2,8 billion euros ($2.82 billion) into its airline, and it hopes the cash will help "make the company viable" in the future, he said.

TAP has received 1,2 billion euros from the debt, and the state will guarantee 90 million euros loans and inject 990 million euros.

On June 18, 2011 there were 257 million euros a state aid package to help the carrier for the effects of the pandemic in 2020. Nuno Santos said, that some resuscitation plans would soon cover the first half of 2021.

In light of the restructuring plan, TAP reduced its fleet size, cut more than 2.900 jobs, and reduced the cost of the most laborious to 25 %, while pilots are facing a 50% tax cut, said the minister.

"No more layoffs were imposed by Brussels, no further wages cut, no more fleet reduction," Santos said.

- 1 = 0.8865 euros.

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