TAP's new restructuring process will not undergo nationalization. After several weeks of uncertainty, the understanding between the shareholders and the government was finally achieved. A good deal, a bad deal? Good for taxpayers, bad for taxpayers? Only the future to bring us conclusions ...
Tap is the subject of the moment in Portugal, since still nothing is certain and each of the party forces assumes very concrete positions.
However, almost all opinions agree that there is no “good” solution to save TAP, resulting in the search for the “less bad” solution. In this matter, the government points to a restructuring with the injection of 55 million euros, which will be applied to obtain a total of 72.5% of the company's capital. This deal will result in Atlantic Gatway's participation in TAP's capital being controlled only by a single shareholder, which will be the Portuguese Humberto Pedrosa, causing David Neelman to abandon TAP after 5 years of membership of the panel of shareholders.
In agreement also seems to be the idea that this restructuring will inevitably have consequences for the company, which since the beginning of the pandemic has not renewed more than a thousand contracts that would be forwards, and already in the first quarter presented negative balances of 395 million euros. The solution, it seems, will inevitably involve a reduction in routes, a reduction in airplanes, and ultimately a reduction in human resources.
In consensus there is also the “fear” that TAP will become a ruinous business and the company may need a new injection before the end of the year, these injections raise voices of displeasure in the North of the country that emphasize that to justify an investment of all Portuguese taxpayers the company must also provide them with some type of public service. From Madeira Miguel Albuquerque, President of the Regional Government of Madeira, stresses that “If you are going to put money in TAP to make a policy like any other company, it’s not worth it” Albuquerque also recalled that Madeira’s trips, from the Mainland, they were more expensive than for New York, an intercontinental flight.
In short, the rescue of TAP is practically guaranteed, and the last details of the business are still being evaluated, which bears many contradictions since it is a company that in 10 years had a loss in 9.
Since there are no optimal solutions for TAP, we, like all Portuguese, wish the company the best of luck and success.