TAP will close if plan rejected

The Portuguese minister for infrastructure, transport and housing, Pedro Nuno Santos, warned on Tuesday that if Brussels fails to give the green light to the airline’s restructuring and recapitalisation programme, TAP will have to close.

He warned that Portugal risked “losing its central position in the airline business” which would in turn lead to its closure (or absorption) if Brussels rejects the government’s makeover plan.
According to Pedro Nuno Santos, without TAP “Portugal’s hub connection (to South America and Africa) would be transferred to Madrid.
“We’re talking about the only airline operating in Portugal that has a hub, that has intercontinental flights between Brazil, the US, Africa and Portugal with links to the rest of Europe”,
he said.
Even if Brussels does give the green light to the fresh round of capitalisation and restructuring plan, TAP will still have to team up with one of the large European international carriers in order to survive as airlines move towards scaling up and consolidation in what has become an increasingly hostile and cut-throat market since the pandemic.
In Europe, there are three large groups, one led by Lufthansa, a second which has resulted from an alliance between Air France/KLM, and a third, IAG (British Airways and Iberia).
Lufthansa and Air France/KLM are leading in the race to partner with the Portuguese airline.
All of these three giants will want to capitalise on TAP’s lucrative Brazilian and African long-haul routes and joining forces with one may well be the only way in which the Portuguese airline can survive.