Portugal's prime minster has warned that TAP will have to impose drastic cuts on routes and staff if the planned privatization of the airline fails due to the current 10-day pilot strike.
TAP pilots have been on strike since May 1 which has reduced scheduled flights by 30%. May 15 is the deadline for bids to be submitted to buy a majority stake in TAP.
"If the privatisation does not succeed, today we know what the alternative is: a restructuring which can only be based on big lay-offs, route reductions, reduction of equipment and thereby a reduction of the operation and significance of the company," Passos Coelho told parliament. "That is, transforming TAP into a mini TAP, which is not in the interests of workers, the economy nor the Portuguese.”