TAP in negotiations to reduce fleet costs

TAP is in negotiation with Airbus in order to bring the costs down from the 53 new aircraft negotiated by ex-shareholder David Neeleman putting a €444 million dent in the airline’s finances.

TAP’s CEO Christine Ourmières-Widener has so far not said whether the company is still financially damaged by the contract signed when the company was privatised in 2015, but she did confirm that negotiations with Airbus had taken place to reduce costs.
“We have an ambitious restructuring plan, we have to reduce our costs, and for any airline the costs on fuel and engines are the most important that we can control. We are having difficult discussions (with Airbus) and we are trying to renegotiate these contracts”, said Christine Ourmières-Widener adding that TAP had not gone down a litigious path. “It’s still way to early for such dramatic steps”.
A parliamentary inquiry is currently underway into the way the airline has been managed over the past seven years. Christine Ourmières-Widener’s contract in the cockpit of the company runs until 2025.

Photo: Lusa: José Sena Goulão