TOURISM LAW AND COMPETITION – A PORTUGUESE PERSPECTIVE 465 Commission’s decisions are summarised hereunder, as well as subsequent developments. These include granting of aid to both airlines for compensation of damage that is directly linked to the coronavirus outbreak during a given time period. F.2.4.1. Aid scheme in favour of TAP According to the European Commission’s decision141, TAP Air Portugal is a major network airline operating in Portugal, responsible for more than 14.000 employees, a fleet of 105 aircrafts and for ensuring vital connections between the major Portuguese cities, both in mainland Portugal and the Portuguese Autonomous Regions of Azores and Madeira. Therefore, it has a crucial social role ensuring the connection between mainland Portugal and its outermost regions, as well as a decisive role in the success of tourism. According to the same decision, TAP Air Portugal’s financial situation was already difficult at the beginning of 2020 and worsened when operations came to a halt due to the pandemic. This has led to the acknowledgement by the Portuguese State that TAP Air Portugal has a shortfall of 1.2 billion euros until December 2020. In light of the above, the Portuguese State has notified a measure in the form of a rescue loan, or a combination of loan and loan guarantees, up to a maximum amount of 1.2 billion euros to be granted to the TAP Group, based on the Portuguese Budget Law for 2020, as amended. The rescue loan was due to be repaid within six months of the date of disbursement of the first instalment, unless Portugal presents a restructuring plan for approval by the European Commission before such date. In this latter case, the repayment period is extended until the European Commission takes a final decision on the aforementioned restructuring plan. According to the Portuguese overriding considerations of legal certainty which justify limiting it. In this context, “[…] the application of the aid measure at issue is part of a process which is still ongoing and which consists of various successive phases and, secondly, that the immediate calling into question of the receipt of the sums of money envisaged by the aid measure would have particularly damaging consequences for Portugal’s economy and air services, in an economic and social context which has already been affected by the serious disturbance in the economy caused by the COVID-19 pandemic. In those circumstances, the General Court decides to suspend the effects of the annulment of the contested decision pending the adoption of a new decision by the Commission. In that regard, the General Court states, however, that if the Commission decides to adopt that new decision without initiating the formal investigation procedure provided for in Article 108(2) TFEU, that suspension of the effects of the annulment may not exceed two months from the date of delivery of the judgment. If, on the other hand, the Commission decides to initiate the formal investigation procedure, the suspension will be maintained for a further reasonable period”. (Press Release available here: https://curia.europa.eu/jcms/upload/docs/application/pdf/2021-05/cp210085en.pdf ). 141 See above note 7.
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