Portugal's TAP rescue plan eyes E2b of extra state aid, sources say

The Portuguese government’s draft restructuring plan for ailing flag carrier TAP projects it may need around E2b of additional state aid by 2024, while thousands of jobs will be terminated to turn the airline around, three sources said. One of the sources familiar with the document told Reuters it envisaged that TAP, which had a loss of E701m in the first nine months of 2020 as the coronavirus pandemic slashed its passenger numbers by 70%, should break even in 2025. The plan still needs to be approved by the EC. If rejected, TAP would have to immediately repay a E1.2b rescue loan agreed earlier this year, which could lead to its insolvency. TAP asked for state aid in April after suspending almost all of its 2,500 weekly flights. Thursday is the deadline for the government, which holds a 72.5% stake in TAP, to send the restructuring plan to Brussels. One source with knowledge of the proposed plan said its base scenario envisaged an additional E2b in public or state-guaranteed loans until 2024.<br/>