EU Grants Extended Deadlines for Portuguese Airlines’ Asset Divestment

The European Commission has extended the deadlines for Portuguese airlines SATA and TAP to divest assets to qualify for state aid. Portugal aims to privatize TAP by selling a 49.9% stake, while SATA has until the end of 2026 to sell a 51% share in Azores Airlines.

The European Commission has granted more time for Portuguese airlines SATA and TAP to divest certain assets to remain eligible for government state aid, as announced on Monday. This move aims to support the privatization process initiated by Portugal for its national airline, TAP.

Portugal's government launched the long-delayed privatization of TAP last year, with intentions to sell a 49.9% stake within a year. At the same time, SATA has been given until December 31, 2026, to sell a 51% share in Azores Airlines, as requested by Portugal and confirmed by the European Commission on Monday.

In addition, TAP's divestment deadlines for service units SPdH and Cateringpor have been extended to June 30. The divestments are crucial conditions for the restructuring aid TAP received from Portugal in December 2021. To mitigate potential competition impacts, the Portuguese government has agreed to reduce the aid amount and extend measures to ensure market competition until asset divestments are fully completed.

(With inputs from agencies.)