TAP may face compensation shell-out for cancelled BMW contract

Portuguese airline TAP may have to pay compensation costs to BMW because it had already signed a contract for the long-lease of 79 vehicles for its board members and senior management figures.

The airline hit the headlines last week after CNN reported criticisms from parliamentary MPs and the President of the Republic for ordering the top-of-the-range cars at a time of great austerity and sacrifice for the Portuguese people.
Now it looks like cancelling the contract might cost TAP for temporarily rejecting orders for 79 vehicles, of which 50 are for TAP SA.
“TAP signed a renting contract to renew its fleet of cars, including 50 cars for TAP SA. Other Grupo TAP companies (not only Portugália) would have benefitted from this larger TAP SA order and also renewed their car fleet. The total number of leasing car, including (for) other Grupo TAP companies would (have been) 79”, states an official source at the company.