New TAP CEO calls on common sense and unity

The new interim CEO of Portuguese airline TAP, Ramiro Sequeira has called on “unity and common sense” to enable decisions to be taken for the good of the airline within the context of a “very slow recovery” in the industry in the coming years.

“It is vital to show common sense and calm” in order to take decisions against the backdrop of a very slow recovery in the industry,” he said referring to the need for unity between staff, unions and all stakeholders.
More important than coming up with a good restructuring plan to show Brussels, the new temporary CEO stressed that the company needed to show it could be implemented in preparation for the recovery over the next three to four years.
Ramiro Sequeira recalled the forecasts in demand for 2021 made by the IATA and Eurocontrol which currently stand at 55%-60% of the demand seen in 2019 under the best of circumstances, in other words “a very slow recovery curve for the next few years.”
Ramiro Sequeira also pointed out that the company is “going through a unique time” and added that the main priorities for TAP in the coming months was to recover operations safely and sustainably and complete a restructuring plan which should be a proper TAP recovery plan.
“We are operating at just 30% of our usual capacity and this is a deliberate decision because we can’t operate flights that are unprofitable and half empty which would put TAP in an even more difficult position,” said Sequeira, stressing that the airline’s main markets of Brazil and the US were still facing strict restrictions, thereby reducing demand as a result, which was also made worse by low demand in medium-haul flights where TAP faces stiff competition from low-cost companies.
Ramiro Sequeira takes over from Antonoaldo Neves who left TAP after brokering an agreement between the Government and private shareholders for the airline to be reorganised and restructured after the exit of Brazilian airline mogul David Neeleman as a key shareholder.
On 2 July an agreement was reached with private shareholders which resulted in the State taking 72.5% of the capital share leaving Humberto Pedrosa with 22.5% and the staff with 5%.