The former executive chairman of TAP claims the Airbus deal was key to saving the company from bankruptcy.

Former TAP executive president Antonoaldo Neves dismissed the fact that the Airbus deal by former shareholder David Nieleman hurt the airline and said it was fundamental to saving the carrier from bankruptcy.

“I do not believe that TAP was harmed, on the contrary, this cancellation, along with the new aircraft, was of fundamental importance in saving TAP from bankruptcy, in moving forward with the commitments made in the strategic privatization plan, and in preventing TAP from closing. as well as other European airline companies that have shrunk significantly,” reads a June 18 written statement sent to the TAP Parliamentary Commission of Inquiry.

Antonoaldo Neves left TAP in 2020 after an emergency bailout that returned the airline to state control.

The former person in charge was asked if he confirms that the cancellation of the contract for the purchase of 12 A350 aircraft from Airbus and replacement with 53 aircraft of other range, which former shareholder David Nieleman agreed to, hurt TAP.

“The reality is that the introduction of the 330-900 and 321 Long Range aircraft was fundamental to the expansion of the TAP network, which grew from 10.6 million passengers in 2015 to 17.5 million passengers in 2019,” said the current President (CEO). director) Etihad Airways.

Prosecutors launched an investigation into TAP’s aviation business following an audit requested by the airline that concluded there were indications that the carrier may be paying more for aircraft than competitors.

“[Estes aviões] are very valuable assets for TAP and for Portugal. In fact, TAP, before privatization, even with state support, did not have the financial ability to pay its operating costs or even acquire aircraft,” the former executive president emphasized.

When asked about interaction with political authorities, the former CEO explained that “in any situation, a shareholder, whether public or private, seeks to influence the company’s management in their decisions.”

“It is common knowledge in Portugal that there were issues on which members of political power had different views on decisions in the field of company management. However, these disagreements during my mandate have always been dealt with professionally by the Executive Committee, and what prevails is established in the company’s charter,” added Antonoaldo Neves.

Regarding the €1.6 million advisory contract with former Executive Chairman Fernando Pinto, Antonoaldo Neves said he was “a valuable advisor to the Executive Committee in several areas” with consultations taking place “as usual”. “by all available means.”

Antonoaldo Neves also confirmed that a possible TAP equity deal with the company was slated, although he did not confirm that it was Lufthansa for privacy reasons and that it was due to be signed in the first quarter of 2020.

“The interested company has valued the “capital” [valor] TAP, in the amount of about 1,000 million euros, expressed interest in retaining the TAP management team and proposed a gradual entry into the company’s share capital and its board of directors,” he specified.

Former economy minister Pedro Siza Vieira, who recalled never having been under TAP’s tutelage, cited the €55 million paid to David Nieleman to leave TAP that the government had decided to opt for this agreement “as opposed to the alternative to nationalization” based on three factors : the possibility of litigation, fear of damaging the reputation of the state, “which may affect the future process of privatization” and “later difficulties in discussion with the European Commission.”

Another of the former rulers who wrote back to MPs was Alvaro Novo, a former finance minister, who wanted to make it clear that “he was not involved in the process leading to the state’s acquisition of €55 million from David Nieleman’s stake in TAP “.

MPE/JF // MSF

Lusa/The End