TAP suspends investments, moves forward with unpaid leave
According to Lusa Agency, the airline executive committee will implement measures to reduce and control costs.
Portugal’s flag carrier TAP executive committee will implement measures to reduce and control costs, including the suspension or postponement of investments and hiring and the implementation of temporary unpaid leave programmes, according to a note sent to staff.
“We will implement a series of initiatives to control and reduce costs such as the suspension or postponement of non-critical investments, cutting ancillary expenses, renegotiating contracts and payment terms, advance credit with suppliers, suspension of hiring new employees, as well as the implementation of temporary unpaid leave programmes,” according to the note sent on Thursday and to which Lusa had access.
The executive committee led by Antonoaldo Neves justified the measures with the impact that the Covid-19 outbreak is having on the company’s bookings.
The airline will reduce about 1,000 flights in March and April due to the fall in bookings.
