TAP Air Portugal confirmed the phased closure of its aircraft maintenance subsidiary in Brazil, as mandated by the European Commission in exchange for the government aid plan approved at the end of last December.
The Portuguese group «decided to end the activity of TAP M&E (TAP Maintenance and Engineering) as part of the restructuring plan approved by the European Commission on December 21,» the company said in a statement.
As reported by the Portuguese website SAPO, the closure of the company will be done little by little, and the contracts signed or in progress will be maintained, but TAP M&E will no longer accept new orders.
This decision was taken after the unsuccessful sale of the company, which has some 500 employees, due to the major crisis in the aeronautical sector caused by the pandemic, according to our Brazilian partner Aeroin.
The closing of TAP M&E will not affect the passenger transport activity to and from Brazil, «as it represents between 25% and 30% of the business volume», were the words of the company’s directors.
The Portuguese airline group, whose financial difficulties increased with the Covid-19 pandemic, was urgently rescued in 2020 by the State. The government had to resolve its renationalization to restore its economy in exchange for a restructuring plan.
The shutdown of its maintenance activity in Brazil, which helped TAP’s accounts to collapse in recent years, was one of the requests from Brussels in exchange for the €2.55 billion rescue plan validated in December 2021.
The European Commission also asked TAP to release departure and arrival slots at Lisbon airport, to spin off its subsidiary Portugalia or even to sell its shares both in the baggage transport company Groundforce, as well as in a catering company.
