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TAP to Receive 970 Million Euro Government Cash Injection

According to the recently released Stability Programme (PE), the Government of the Republic plans to inject 970 million euros into TAP this year, a measure classified as temporary and whose effect on public accounts will be reversed in 2022 and 2023.  After the injection of this money during 2021, the Government forecasts that the effect of 170 million euros of this operation will be reversed in 2022, estimating the same for the remaining 800 million euros in 2023.

On the 12th of March, the Government submitted to the European Commission a notification for the granting of interim aid to TAP of up to 463 million euros which “will allow the airline to guarantee liquidity until the restructuring plan is approved.”

In 2020, TAP returned to State control, which now holds 72.5% of its capital, after the company was severely affected by the covid-19 pandemic and the European Commission authorised state aid of up to 1,200 million euros to the Portuguese carrier.

Six days after the executive’s statement, the European Commission confirmed that it had received a request from Portugal to provide interim state aid to TAP, which the Government announced was up to 463 million euros, with Brussels analysing it as a “priority issue” .

“Separate to the 1,200 million euros state aid already approved in June 2020, the Portuguese authorities notified the airline that they would offer a measure of support due to the pandemic.”

Samantha Gannon

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