The Portuguese government is in talks to assume more control over TAP Air Portugal (TP, Lisbon) if it is to provide the struggling carrier with a EUR1.2 billion euro (USD1.35 billion) rescue loan, the country's Expresso newspaper reported on June 13.
The European Commission approved Portugal’s planned loan on June 10. The aid can be granted for a maximum of six months, and TAP, which has immediate liquidity needs, must reimburse the money or submit a restructuring plan in that time.
“In a sector that has been hit particularly hard by the coronavirus outbreak, the measure will help avoid disruptions for passengers. With the progressive lifting of travel restrictions and the upcoming tourism season, it also indirectly benefits the Portuguese tourism sector and economy as a whole,” the commission's executive vice president, Margrethe Vestager, said in a statement.
TAP Air Portugal had already been facing financial difficulties before the coronavirus outbreak, the European Commission pointed out.
The government owns 50% of the company, the Atlantic Gateway Consortium of entrepreneurs David Neeleman and Humberto Pedrosa hold a 45% stake, and employees the remaining 5%.
Lisbon controls half of the 12 seats on the board and appoints the airline’s chairman. But the consortium appoints the remaining six members and the three members of the executive committee, including the chief executive, and effectively runs the day-to-day business.
The government is negotiating with the private shareholders about the loan and control over the flag carrier, the newspaper said without naming its sources, and the consortium's response should be provided in the coming days.
