Government wants to save TAP, but doesn’t exclude insolvency

  • ECO News
  • 19 May 2020

The Minister for Infrastructure and Housing says that the state will "intervene to ensure that TAP does not collapse", but says that some scenarios cannot be excluded. Including insolvency.

The Minister for Infrastructure and Housing, Pedro Nuno Santos, ensures that the government will make the “necessary intervention” to save TAP, however, he says the government will not allow itself to be “deceived” or “used” by private shareholders. Thus, at this stage of discussing the State aid that will be given, scenarios cannot be excluded, not even the insolvency of the company.

“The government wants to stick with TAP and we will make the necessary intervention to ensure that TAP does not collapse”, the minister began by saying this Tuesday, during a hearing at the Commission on Economy, Innovation, Public Works and Housing.

“The State will negotiate and we cannot exclude any scenario, including the insolvency of the company,” continued Pedro Nuno Santos, adding that “the government cannot be ‘captured’ or ‘handcuffed’ in negotiation with private parties.”

But despite assuring that the government will do everything to save the national company, Pedro Nuno Santos points out that “the State cannot intervene in TAP at any price”. “The State is available but, naturally, it has to impose conditions on the private shareholders,” he said.

Reinforcing the position he has adopted since the beginning, the Minister for Infrastructure said no intervention will be made “without very firm conditions being accepted in terms of burden-sharing and control standards by the State”. “If our conditions are not accepted, there will be no public intervention, because we respect the Portuguese,” the minister added.