The European Commission has allowed the transfer of €462 million ($560 million) in COVID-19 pandemic damages from the Portuguese state to TAP Air Portugal but the airline is still waiting on EC approval for its turnaround plan.
The Portuguese flag-carrier said it hopes to reach 60-70% of the equivalent 2019 capacity by the end of 2021, providing its restructuring plan is approved.
Several Star Alliance airlines have reduced their February capacity further after stricter travel restrictions designed to stem the spread of COVID-19 made air travel nearly impossible.
TAP Air Portugal plans to reduce its fleet to 88 aircraft and cut 2,000 positions under a restructuring proposal, which has been submitted to the European Commission (EC) for approval.
During a series of airline briefings at Routes Reconnected, leaders of network planning teams will outline their recovery strategies, how they will identify new market opportunities and what support mechanisms will influence future route decisions.
As lockdowns ease, new market patterns, regulations and business practices are emerging. Those organizations that adapt most effectively will emerge strongest.
Portugal has become the latest European government to back its largest airline after increasing its existing stake in TAP Air Portugal from 50% to 72.5%.
TAP Air Portugal is resuming flights to North America later this week, with New York the first destination to make its way back onto the airline’s schedule. Three new routes will also be added to its schedule from July 1.
Venezuela has banned TAP Air Portugal from operating into the Venezuelan capital Caracas for a period of 90 days following what it described as “serious irregularities” in a recent flight.
A joint venture is nearing between Brazilian budget airline Azul and TAP Air Portugal, which would see the two carriers coordinate schedules and pricing on routes between Brazil and Europe.
The growth from Azul means there are now 18 airlines offering flights between Europe and Brazil, according to OAG data, and TAP Portugal dominates this market with over 900,000 one-way seats available this year, based on published schedules. This is a 23.9 percent share of the total market from Europe to Brazil.
In a deal to complete a long-awaited fleet renewal at PGA Portugália, which has been delayed for a number of years due to investment limitations, TAP will replace its current fleet of ATR turboprops, Embraer ERJ145s and Fokker 100s on a like-for-like basis with eight ATR 72s and nine Embraer 190s.
