TAP extends “lay-off” until May 31

The Board of Directors of Transportadora Aérea Portuguesa decided to extend the lay-off period for a further 30 days, until May 31, considering that the conditions that led to the adhesion to the measure are maintained in early April.

Covid-19: TAP extends lay-off until May 31

“Considering that the conditions that made us adhere to this measure remain, in the vast majority, namely the restrictions on the mobility of citizens from all over the world and the uncertainties regarding the resumption of activity, we will extend the period of ‘lay-off’ for a supplementary period of 30 days, until May 31, according to the decree-law that regulates this matter ”, informed the airline’s Board of Directors today, in a letter to which Lusa had access.

The air carrier also clarifies that employees will be informed individually about the modality that will be applied to them in extending the ‘lay-off’ and reiterates that “everything will be done to protect the jobs, health and safety of the TAP family”.

Currently, TAP has its operation suspended almost entirely, maintaining only flights to Terceira and Ponta Delgada, in the Azores, and to Funchal, in Madeira, mainly for repatriation flights and transport of humanitarian cargo.

On April 2, the airline resorted to the simplified lay-off program, made available by the Government as one of the measures to support companies suffering from the effects of the covid-19 pandemic on the economy.

In a letter sent to the National Civil Aviation Authority (ANAC) and signed by the carrier’s Executive Committee, on March 20, TAP asked the State for guarantees for two possible financing operations, by Haitong and ICBC Spain, for a total of 350 million euros.

On April 14, in an interview with Rádio Observador, the Prime Minister did not exclude the recourse to nationalization of TAP, stating that there is “no reason to exclude any public action instrument that may prove necessary”.

“It is certainly not in our minds [of the Government] to nationalize the Observer. Regarding TAP, where the State is already a shareholder, we all know that the civil aviation sector suffered this crisis situation devastatingly”, said, at the time, the leader of the executive.

Portugal accounts for 903 deaths associated with covid-19 in 23,864 confirmed cases of infection, according to the daily bulletin of the Directorate-General for Health (DGS) on the pandemic.

The “Great Confinement” has led the International Monetary Fund (IMF) to make unprecedented forecasts in its almost 75 years: the world economy may fall 3% in 2020, dragged by a 5.9% contraction in the United States, from 7, 5% in the eurozone and 5.2% in Japan.

For Portugal, the IMF predicts a recession of 8% and an unemployment rate of 13.9% in 2020.