The European Commission has extended the deadlines for airlines SATA and TAP to finish divesting assets in order to qualify for state aid from the Portuguese government, the EU’s competition authority said on Monday. Portugal’s government relaunched the long-delayed privatisation of flag carrier TAP last year, saying it aimed to sell a 49.9% stake within a year. Following a request from Portugal, the European Commission said on Monday it had agreed to extend until December 31, 2026, the deadline for SATA to sell a majority shareholding of 51% of Azores Airlines.
It also extended the deadline for the divestment of TAP’s shareholding in service units SPdH and Cateringpor to June 30 this year. The divestments were a condition for the approval of the restructuring aid granted by Portugal to TAP in December 2021. “To limit the negative effects of the extension of the deadline on competition, Portugal has offered to correspondingly reduce the aid amount and to prolong measures to ensure competition until the full divestment of the assets,” the Commission added in a statement.
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