This immediate state injection into TAP aims to make urgent payments, in particular salaries to workers and suppliers.
The government is in negotiations with the European Commission for an immediate state injection into TAP, reports Jornal Económico. At stake is the early payment of state aid, destined for the airline’s most urgent payments, which may exceed 200 million euros.
This anticipation comes as the airline’s cash flow needs are only assured until the end of March and it is not foreseeable that, by then, the talks with the European Directorate-General for Competition for approval of the restructuring plan will be finalised. The “green light” to this plan is necessary to unblock another tranche of state aid.
This immediate state injection, which will have to be approved by Brussels, would be aimed at making urgent payments, including salaries to workers and suppliers.