EU regulators approve 462 million euros loan for Portugal's TAP airline

The European Commission said on Friday it had authorised a loan of 462 million euros ($556.9 million) from the Portuguese government to airline Transportes Aereos Portugueses (TAP) to compensate for damage suffered during the pandemic. The airline, similar to others across Europe, incurred significant losses due to travel restrictions in Portugal and destination countries, the Commission said.

The European Commission said on Friday it had authorised a loan of 462 million euros ($556.9 million) from the Portuguese government to airline Transportes Aereos Portugueses (TAP) to compensate for damage suffered during the pandemic.

The airline, similar to others across Europe, incurred significant losses due to travel restrictions in Portugal and destination countries, the Commission said. "This measure will enable Portugal to compensate TAP for the damage it suffered as a direct result of the travel restrictions that Portugal and other destination countries had to implement to limit the spread of the coronavirus," EU antitrust commissioner Margrethe Vestager said in a statement.

The support, in the form of loan, may be converted into capital and disbursed to TAP in one or several instalments. ($1 = 0.8295 euros)