Portugal does not rule out possibility of nationalizing flag carrier TAP Air

Source: Xinhua | 2020-04-15

Portuguese Prime Minister Antonio Costa has said his government does not rule out the possibility of nationalizing Portugal's flag-carrier TAP Air in a bid to save the airline from a financial dilemma due to the COVID-19 pandemic.

In an interview with Radio Observador broadcast on Tuesday, Costa said the Portuguese aviation sector was suffering a "devastating situation" caused by the pandemic.

"There is no reason to exclude any instrument of public action that may be needed. We cannot exclude the need to nationalize TAP or another key company for the country. We cannot allow worsening of the economic crisis," he said.

Costa's remarks came one day after Portuguese Finance Minister Mario Centeno did not rule out the possibility of nationalizing the airline, of which the Portuguese government holds a 50-percent stake.

The prime minister said that several private shareholders of TAP Air expressed a "position to sell" their respective holdings.

He also disclosed that in February, the airlines Lufthansa and United Airlines considered the acquisition of part of TAP Air shares. But he dismissed the possibility at the time, saying that "no airline is thinking about new investments."

TAP Air has been used in recent weeks in operations for the repatriation of Portuguese who were abroad and transport of medical supplies.

TAP's commercial flights are reduced until May 4 to just five per week, only to serve the islands of Portuguese national territory. It has grounded more than 100 planes and placed 90 percent of its more than 10,000 employees on "lay-off" due to the outbreak of the novel coronavirus, local media reported.

According to the daily bulletin of the health authorities, Portugal has registered 567 deaths and 17,448 cases of infection as of Tuesday.