On March 6th, 2023, Christine Ourmières-Widener, CEO of TAP Air Portugal, was ousted from her position due to the airline’s recent financial struggles and subsequent bailout from the Portuguese government. TAP Air Portugal is one of the largest airlines in the country, serving over 80 destinations across the world.
Ourmières-Widener had taken over as CEO in 2021, but during her tenure, the airline’s financial situation continued to worsen, leading to a €3.7 billion bailout from the Portuguese government. The bailout came with conditions, including the need for TAP to implement a new strategic plan to address the airline’s financial difficulties.
Despite efforts to turn the airline around, the Portuguese government ultimately decided to remove Ourmières-Widener from her position. The former head is a seasoned aviation executive who previously served as CEO of Flybe and Managing Director of CityJet.
The decision to remove Ourmières-Widener was made following an audit by the IGF (Inspeção-Geral de Finanças – General Inspectorate of Finance), which revealed irregularities in TAP’s management. The audit found that Alexandra Reis, a former member of TAP’s board, had received an excessive compensation package, of around half a million euros.
Money’s too tight to mention: Former board member must return excessive severance package
The Portuguese government clarified that the IGF made no suggestion that Alexandra Reis should be reinstated at TAP, as the part of the agreement that led to the termination of her employment with the airline is valid.
What was considered null and void was the agreement to leave the position of director before the end of the term of office and for which Alexandra Reis received around 450,000 euros. This is the amount that TAP will have to ask the former director to reimburse.
Portugal’s Minister of Infrastructure João Galamba has already announced the new CEO of TAP: Luís Rodrigues, current CEO of the Azorean carrier SATA, who will also serve as non-executive chairman.
According to the Minister, Rodrigues is a Portuguese executive who will be able to meet TAP’s challenges. He has been managing SATA within the framework of the restructuring plan that was also negotiated with the European Commission.
Galamba believes that the manager will be able to restore confidence in TAP and social peace in the company and continue to implement the restructuring plan.
