“It has been very encouraging to see the restructuring plans that have been outlined for TAP. I think there is a long-term viability for the company”, declared the Executive Vice President of the European Commission and responsible for the area of Competition, Margrethe Vestager.
At a press conference in Brussels on new guidelines on state aid for climate, environment and energy, the official was asked about TAP's restructuring plan and assured that the community executive is “working hard right now for a decision this week".
“The public support for TAP is quite large and, in order to alleviate the distortion of competition, TAP has also accepted some compromises”, said Margrethe Vestager.
The Government handed over to the European Commission, a year ago, the restructuring plan for TAP, having in the meantime implemented measures such as the reduction of workers.
After the European Commission approved, on June 10, 2020, state support of up to €1,200 million to TAP, the company had six months to present a restructuring plan that convinces Brussels that the company has future viability.
In August of this year, the European Commission admitted it feared that TAP's €3,200 million restructuring aid would violate competition rules, a complaint that has been repeated by other airlines such as Ryanair.
Brussels also said it doubts that the support of €3,200 million will guarantee the company's viability at all, despite recognizing the importance of the Portuguese state saving the air carrier.