The recently approved restructuring plan of Portugal's airline (TAP) forces the carrier to divest three companies, after being rocked by a drop in revenues due to the covid-19 pandemic.

The agreement with the European Commission (EC) leads TAP to sell the handling company Groundforce, the catering company Caterinpor and the maintenance company VEM (Varig Engenharia e Manutenção) Brasil now TAP M&E Brasil. Negative accounts may make it preferable to liquidate the Brazilian operation.

The understanding with the EC provides for TAP to compensate for the state aid, and the way out is precisely the sale of the three companies and the loss of 18 slots at Lisbon airport.

The loss of "Slots

"Slots" are authorizations for positions at the airport in certain slots, which are disputed by airlines. By losing nine of them, which are equivalent to 18 movements (nine landings and nine take-offs), companies such as Ryannair (which has filed a lawsuit against TAP) will have room to grow their operation. This is precisely one of Brussels' objectives: to increase competition.

It is one of the main "remedies" imposed by Brussels, which implies the loss of market share at the Humberto Delgado Airport, the Lisbon hub. TAP is the company with the largest presence in this infrastructure, representing close to 50% of the operation. The proportion will therefore be reduced.