With around 1,2 billion euros, Portugal wants to take the airline TAP under the wings. However, the once state-owned airline has to drastically downsize. The planned phasing out of 17 machines will also result in the loss of around 3.600 jobs.

Local media unanimously report that the jobs of 750 flight attendants, 750 ground service employees and 500 pilots are acutely shaky. Furthermore, fixed-term employment contracts of around 1.600 people are not to be extended. 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 want to discuss the restructuring plan on Wednesday. It is to be expected that the employee representatives will take action against the planned dismissals. The unions are already criticizing the fact that tax money is 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 take place shortly after the talks that take place this week have ended.

TAP Air Portugal had to be privatized in the wake of the financial crisis. This turned out to be difficult because several attempts failed. Ultimately, an Atlantic Gateway went around David Neeleman. Secretly, however, the influence of the state is increasing again, because initially Portugal increased again to 50 percent and since July 2020 the majority has again been held at 72,5 percent. Local media suspect that the Neeleman consortium could now withdraw completely and nationalization could take place. The decisions on this are expected in the next few days.