A restructuring plan for Portugal’s flag carrier TAP will be sent to the European Commission in November, the secretary of state for the treasury Miguel Cruz said today. This comes following the European Commission approval of an €1.2 billion rescue loan in June, which is contingent on the airline drawing up a restructuring plan within six months. If Brussels accepts the plan, TAP will have several years to repay the debt, otherwise it must be repaid immediately, which the airline cannot do. In its 2021 draft budget, Portugal has included a state guarantee for a new loan of €500 million for TAP.
The Portuguese government signed an agreement at the beginning of July to purchase shares from TAP’s private shareholders, increasing its stake to 72.5% from 50% but avoiding a full nationalisation. Infrastructure Minister Pedro Nuno Santos said in an interview with Reuters last month that “TAP was unlikely to succeed alone in the global aviation market and must be open to consolidation in the medium term”. An opportunity for IAG?