The Portuguese government submitted an application for approval to the EU Commission for further state aid for TAP Air Portugal. This is estimated at 463 million euros. In the run-up, there was a hard exchange of blows between the unions, management and the government, which demanded downsizing and wage cuts.
Lisbon expects the competition watchdogs to give the green light shortly. It is currently assumed that the EU Commission will grant approval at the beginning of April 2021. TAP Air Portugal is badly hit due to the corona pandemic. The salaries of the staff were reduced, whereby the Government has been extremely tough.
The majority of the carrier is owned by the state of Portugal. Partial privatization was carried out a few years ago, but the participation of the public sector has increased steadily. The restructuring plan provides, among other things, that the workforce should be significantly reduced. Employees should also in the future receive less wages. Those who do not give their consent are at risk forced reduction in wages or even termination.