ANNOUNCEMENT 21 Dec 2021

In December 2021, the European Commission approved a EUR 107 million state loan aid measure in order to support Transportes Aéreos Portugueses (TAP Air). 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 21 Dec 2021 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

On 21 December 2021, the EU approved a EUR 107 million (approx. USD 120 million) state aid measure from Portugal in favour of Transportes Aéreos Portugueses (TAP Air), in order to compensate the company for damages suffered between 1 July 2020 and 30 December 2020. The state aid measure will take the form of either a capital injection measure or a loan convertible into capital. This choice will be made by the Portuguese authorities.

The measure will be administered by the Directorate General for Treasury and Finance at the Ministry of Finance. On the same day, another bailout package was approved (see related state act).

In its decision, the European Commission noted that: "The measure is liable to distort competition, since it strengthens the competitive position of TAP. It also affects trade between Member States, since TAP is active in the aviation sector, in which intra-Union trade exists."

Regardless, the European Commission did not raise objections on the grounds that "it is compatible with the internal market pursuant to Article 107(2)(b) of the Treaty on the Functioning of the European Union."

Given this context, the state aid was assessed and approved under the Guidelines on Rescue and Restructuring, which enable EU countries to support companies in difficulty, provided that the public support measures are limited in time and scope and contribute to an objective of common interest.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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