Portugal's TAP to compete globally despite tough rescue plan - minister

Portugal's government said the country's ailing flag carrier TAP will be able to compete on a global level but will need partners after the extensive restructuring imposed by a Brussels-approved rescue plan worth E3.2b. Over the past six months, EU antitrust regulators have been examining whether the plan, which involves thousands of job and pay cuts, is proportionate and complies with state aid rules, and whether it affects competition. The EC approved it on Tuesday but imposed safeguards to limit distortions to competition. "TAP will capitalise, and will be able to continue to operate and compete in a highly competitive global market," Infrastructure Minister Pedro Nuno Santos told a news conference late on Tuesday. But he warned that the airline, which is 72.5% controlled by the Portuguese state, "could not survive alone" and must look for partners. The government is now authorised to inject E2.5b into the airline, and it hopes the cash can help "make the company viable" in the future, he said. TAP has already received E1.2b from that amount, and the state will guarantee 90% of a E360m loan and inject another E990m. EU regulators also approved a E569m state aid package to compensate the airline for the impact of the pandemic in 2020, and are expected to approve further compensation soon to cover the first half of 2021, Nuno Santos said. As part of the restructuring plan, TAP has already reduced its fleet size, cut more than 2,900 jobs and reduced the salaries of most workers up to 25%, with pilots facing a 50% pay cut, the minister said.<br/>