TAP: 1,2 billion state aid, but 3.600 jobs wobble
Portugal wants to give the airline TAP a helping hand with around 1,2 billion euros. However, the once state-owned airline must drastically downsize. The planned retirement of 17 aircraft will also entail the elimination of around 3.600 jobs. Local media unanimously report that the jobs of 750 flight attendants, 750 ground service employees and 500 pilots are at risk. Furthermore, the temporary employment contracts of around 1.600 people are not to be renewed. TAP Air Portugal wants to save personnel costs in the hundreds of millions. The carrier is currently forecasting an annual loss of 582 million euros. Management, government and unions will discuss the restructuring plan on Wednesday. It is expected that the employee representatives will take action against the planned dismissals. The unions are already criticizing and accusing taxpayers' money of being used to destroy jobs. Portugal has not yet submitted the planned state aid of 1,2 billion euros to the EU Commission for approval. However, this should happen shortly after the conclusion of the talks, which are taking place this week. TAP Air Portugal had to be privatized in the aftermath of the financial crisis. This proved difficult because several attempts failed. Ultimately, an Atlantic Gateway company headed by David Neeleman was chosen. However, the state's influence is quietly increasing again, as Portugal first increased its stake to 50 percent and since July 2020 it has held the majority again with 72,5 percent. Local media suspect that the Neeleman consortium could now withdraw completely and renationalization could take place. The decisions on this are expected in the next few days.