Portugal takes majority share in TAP in bail out deal

by   CIJ News iDesk VII
2020-07-03   16:00
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The government in Lisbon will plow €55m into the country's major airline TAP, which has been hobbled by the coronavirus crisis. As part of the agreement, the state's share has risen from 50 to 72.5 percent. TAP was partially privatized five years ago when the government intervened to prevent its collapse.

According to government figures, almost 90 percent of foreign tourists come to the country by plane - and half of these arrive by TAP, making it a key business. After long negotiations, the government reached an agreement with TAP's largest shareholder David Neeleman who agreed to sell his shares. Neeleman and his Portuguese partner Humberto Pedrosa previously held around 45 percent of the airline, but Pedrosa will keep about 22 percent.