The European Commission approved a €1.2bn emergency aid package from the Portuguese government to the TAP airline that has predetermined conditions for its repayment. The Portuguese authorities have committed to repay the loan or to present a restructuring plan within six months, in order to ensure the ongoing viability of TAP. The government argued that the airline was unduly impacted by the Covid-19 pandemic when traffic was suspended. The EC evaluates such aid packages to make sure they meet its conditions that public support be time-limited and that they contribute to an objective of common interest.
