466 COMPETITION LAW IN TOURISM State, which jointly controls TAP Group since 2016142, this was the solution found to address the immediate liquidity needs for a six-month period between July and December 2020. Otherwise, TAP Group would fail to meet immediate and significant due payments, and an important segment of Portuguese companies linked to tourism would fail to survive this economic crisis. Considering that TAP Group was not eligible to receive support under the Temporary Framework because it was an “undertaking in difficulty”, the European Commission has assessed the state aid measure notified by the Portuguese State under the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (“Guidelines”)143 and article 107(1) of the TFEU. In this context, the European Commission has concluded that the notified measure should be qualified as aid and is lawful and compatible with the internal market under article 107(1) and (3)(c) of the TFEU and the Guidelines. Amongst the features to consider, the Commission concluded that: a) Eligibility: TAP (i) qualifies as an undertaking in difficulty which without intervention by the state, and would almost certainly be condemned to go out of business in the short ormedium term; (ii) is not a newly created undertaking since it was incorporated more than 3 years ago; and (iii) the company’s difficulties are intrinsic and are too severe to be dealt with by the group itself; b) Contribution to a common interest goal: It would be difficult for a competitor to step in and replicate the role of TAP Air Portugal without risking a significant impact on routes and a negative effect on important tourism-related segments of the Portuguese economy; c) Appropriateness: The Portuguese authorities declared that the loan will be used only to meet the urgent liquidity needs of the beneficiary, in particular, to cover normal operating costs and not to finance structural measures or other activities; d) Proportionality / aid limited to the minimum: The European Commission has reviewed the liquidity plan submitted by the Portuguese authorities and found that it reflects the liquidity needs of the beneficiary, thus not exceeding the minimum amounts needed to achieve the common interest goal; e) Transparency: The Portuguese authorities have undertaken to make available all relevant acts and pertinent information about the aid to the economic operators and the public in general. 142 See above note 58. 143 Communication from the Commission – Guidelines on State aid rescuing and restructuring non-financial undertakingsindifficulty,availableat:https://eur-lex.europa.eu/legal-content/GA/TXT/?uri=CELEX:52014XC0731(01).
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