The European Commission announced on Friday that it would launch an investigation into Portugal’s 3.2 billion euros in funding for the airline’s reorganization plan.
Brussels announced on Friday that it had launched an investigation into Portugal’s assistance of 2 3.2 billion to finance TAP’s airline restructuring plan in the aftermath of the epidemic.
In the same press release, Brussels indicated that it had approved a previous loan of 1. 1.2 billion for the second time. The European Court of Justice canceled the first green light in May following a challenge from Irish rival Ryaner.
The European Union (EU) has launched a comprehensive investigation into “compliance with EU rules on Portugal’s planned reorganization assistance to the TAP.” This procedure provides an opportunity for Portugal and interested third parties to submit observations, ”the statement said.
There are less than 2,000 employees
This rescue plan for the company helps to reduce the workforce of tens of thousands of employees before a pandemic, wage cuts or reduction in the number of companies.
Portugal reported to the Commission on June 10 a total of 2 3.2 billion in aid reorganization. This amount includes 2. 2.73 billion in equity or quasi-equity, including $ 1.2 billion in debt, which will eventually be converted into equity.
In addition, the Portuguese state is considering additional support of 12 512 million in the form of a state guarantee for loans from 2022 onwards.
On May 19, the European Commission ruled that Ryaner’s capture was a green light for state aid from Portugal and the Netherlands.
Very favorable European case law
The Luxembourg-based EU General Court had asked the commission to make a fresh decision to justify each of these extraordinary aids, accusing the Irish low-cost company of favoring their rivals. This is what Brussels did on Friday for the TAP.
Despite the challenges posed by Ryaner, who has initiated numerous lawsuits against public support for airlines, the decisions of Brussels and European case law continue to be very favorable in the context of this extraordinary crisis.
For the past year and a half, much of the airline has been grounded due to pandemic travel restrictions.