Commission approves €462 million Portuguese coronavirus support

The European Commission has found a €462 million Portuguese support measure in favour of Transportes Aéreos Portugueses, S.A. (“TAP”) to be in line with EU State aid rules. The measure aims at compensating the airline for the damage suffered due to the coronavirus outbreak between 19 March and 30 June 2020.

Executive Vice-President Margrethe Vestager in charge of competition policy, said: “This measure will enable Portugal to compensate TAP for the damage it suffered as a direct result of the travel restrictions that Portugal and other destination countries had to implement to limit the spread of the coronavirus. Separately, our assessment of the restructuring plan for the company submitted by Portugal is ongoing. We continue being in close and constructive contacts with the Portuguese authorities in this context.”   

TAP is a subsidiary of Transportes Aéreos Portugueses, SGPS, S.A. (“TAP SGPS”), a holding company controlled by the Portuguese State, which, in addition to TAP, also owns other companies active in air passenger and cargo transportation, catering and handling services, maintenance, repair and operations in Portugal and Brazil. TAP, in addition to being the largest subsidiary of TAP SGPS, is the largest airline based in Portugal. In 2019, it accounted for more than 50% of the arrivals and departures at Lisbon International Airport. TAP is a major economic operator in the country, as well as a significant employer.