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Automotive

Reuters exclusively reports Portugal confident it will get EU green light for TAP rescue plan in first quarter

Portugal is confident the European Commission will approve its plan to rescue ailing flag carrier TAP, Finance Minister Joao Leao told Reuters in an interview, adding that he expected that green light by the end of March. The government unveiled its overhaul plan last month, proposing 2,000 job cuts by 2022 and pay cuts of up to 25%, while saying the airline would need around 2 billion euros ($2.46 billion) in extra funds with state guarantees to cover financing needs until 2024. The stakes are high: if the EU executive rejects Lisbon’s proposal, TAP would have to immediately repay a 1.2 billion euro rescue loan agreed in June, which could lead to its insolvency.

Article Tags
Topics of Interest: Automotive
Type: Reuters Best
Sectors: Equities
Regions: Europe
Countries: Portugal
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Major Global Story
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