The charter airline Air Atlantis was only in the air between 1985 and 1993, but the judiciary was busy with the transfer of operations to the parent company Tap Air Portugal for a very long time. For 22 years there was a dispute in court and only then was there a final solution.

In the 1980s, European air travel was largely regulated. Bilateral agreements between states not only regulated who was allowed to fly on which route, but also the ticket prices, which at that time were usually still printed in the flight plan booklets. In most cases, scheduled services were reserved for the so-called flag carriers. Private companies were only granted traffic rights in exceptional cases or had to look elsewhere.

Charter flights were much easier to set up, because it was comparatively easy to ask for a permit. It was often stipulated that these had to be part of a package tour. Occasionally the airlines then founded their own tour operators and on routes that were obviously more scheduled, they included the cheapest “on paper” drop-offs, since these were usually not used anyway. And if you did, at least you didn't have to spend a lot of money on the passenger's accommodation.

Losses accumulated, "record profit" was a capital increase

Tap Air Portugal also wanted to participate in the growing charter market in the 1980s and quickly founded the subsidiary Air Atlantis, i.e. after years of consultation and some “expert commissions” set up by the government later. This took off in 1985 and was active with the Boeing 707, 727 and 737 models, among others.

The charter airline had counted on being under government control, because at that time Tap was owned by Portugal, never. The exact opposite was the case, because year after year the losses increased and then the government pulled the plug on the adventure. The carrier was dissolved, i.e. merged into the parent company Tap Air Portugal. Incidentally, Tap was not profitable even during this period, because the flag carrier was considered a flying money-destroying machine at the time. But the founding of the offshoot was quite right for the management, because the oldest jets could be "pushed off" to Air Atlantis and newer planes could be "cheated" from the government.

Before the merger, there was another absurd episode in 1988, because “on paper” Air Atlantis was able to report record profits. However, this was literally concealed by a capital increase of around 1,7 million euros. The privatization of 25 percent of the shares did not last long. And that's where Tap Air Portugal played a role again, because they prevented Air Atlantis from going on the line due to relaxed regulations.

Last flight on April 30, 1993, ECJ judgment only in 2015

It was finally decided on February 19, 1993 that Tap and Air Atlantis would be merged. There was a transfer of operations, but all employees of the charter airline were made redundant. A legal dispute began between the employees and Tap Air Portugal, which was only finally decided in 2015 by a judgment of the European Court of Justice. A proud 22 years after the dissolution of the former airline, there was legal certainty for everyone involved.

While Tap Air Portugal took the view that Air Atlantis was closed and dissolved, but that its former employees could re-apply for jobs at Tap, both the Portuguese Supreme Court and the ECJ saw it very differently. It was ruled that there was a transfer of business and that there was no legal basis for the collective termination of all Air Atlantis employees. The fact that Tap took over existing charter contracts from Air Atlantis in the course of the merger, which they themselves describe as dissolution, and at least some aircraft were “postponed” also had an impact on the decision. Incidentally, Air Atlantis' last flight was on April 30, 1993 as AIA 363 between Amsterdam and Faro. After that, the short-lived history of the Tap charter subsidiary ended – at least as an airline, because it went on in court for another 22 years. After all: For the 97 employees who endured the long legal battle, the ECJ finally awarded lavish compensation.