“The Portuguese State received confirmation from the European Commission—via the Permanent Representation of Portugal to the European Union (REPER)—that TAP’s Restructuring Plan has been completed,” the Ministry of Infrastructure and Housing announced.

“The plan enabled TAP to become a financially more robust company,” it added.

Submission of documentation

This confirmation follows the Portuguese authorities’ submission of documentation proving the full implementation of the measures outlined in the plan approved by Brussels in December 2021, in accordance with State aid rules.

“The plan’s final conditions had already been met through the divestments of Cateringpor and SPdH, as well as the repayment of €24.99 million to the State,” the statement noted.

Plan conclusion

TAP had announced the plan's official conclusion on 12 June, following the finalisation of the sale of its stakes in Cateringpor and SPdH (Serviços Portugueses de Handling, formerly Groundforce).

At the time, the airline said the plan's conclusion included the repayment of €24.99 million to the State, as part of a share capital reduction approved by TAP’s sole shareholder, the Portuguese Republic, through the Treasury and Finance Agency.

Portugal commitment

This amount stemmed from a commitment Portugal made to Brussels when the deadline for selling TAP’s stakes in the former Groundforce and Cateringpor was extended to 30 June 2026.

In the statement, the Government highlighted that the additional six-month period ensured “full compliance with all remaining conditions,” specifically the divestment of the shareholdings.

TAP’s restructuring plan was approved by Brussels in December 2021, following the aviation sector crisis caused by the COVID-19 pandemic, and was linked to state aid totalling approximately €3.2 billion.

Measures for the operations

The plan included measures for the airline's operational and financial restructuring, the divestment of non-strategic assets, and remedies designed to safeguard competition within the European market.

In the Government's view, the formal conclusion of the process "also reinforces the Portuguese State's credibility with European institutions" and demonstrates "execution capability in a particularly demanding process that has been closely monitored since 2021."

The ministry also believes that the completion of the restructuring marks the beginning of a new phase for the airline, allowing the focus to shift toward TAP’s growth, value enhancement, and future development, "with greater predictability and clarity regarding the ongoing privatisation process."

"Finalising the restructuring process allows TAP to face the future with greater confidence, reinforcing its role as a strategic national asset and Portugal’s positioning as an international aviation hub," stated Miguel Pinto Luz, the Minister of Infrastructure and Housing, as quoted in the same press release.

The plan’s conclusion comes amidst the ongoing partial privatisation process for TAP, relaunched by the Government in 2025, which entails the sale of up to 49.9% of the airline's equity (44.9% to a cornerstone investor and up to 5% reserved for employees), while the State retains a majority shareholding.

At this stage of the process, the Air France-KLM and Lufthansa groups remain in the running and are expected to submit final bids for an equity stake in the carrier by next month.

The government expects to finalise the sale this year, anticipating a decision on the buyer to be made by the Council of Ministers in late August.