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HomeLatest NewsThe Portuguese Government dismisses the leadership of the TAP airline for compensation

The Portuguese Government dismisses the leadership of the TAP airline for compensation

Date: March 29, 2024 Time: 02:39:39

The Portuguese Government has announced this Monday that it is going to dismiss the leadership of the TAP airline, whose capital is state-owned, after carrying out an inspection that has determined that the compensation of half a million euros paid to a former administrator was illegal. In this way, the president of the SATA group, Luís Ribeiro, will assume the two vacant positions.

The Finance Minister, the socialist Fernando Medina, said at a press conference that it is necessary to “turn the page” in the management of the company and announced the dismissal of the CEO of TAP, Christine Ourmière-Widener, and the president of the council of administration, Manuel Beja.

Reis was appointed Secretary of State for the Treasury months later and the controversy over the compensation and her new position ended in a crisis for the Socialist government, with her resignation and that of the Minister of Infrastructure, Pedro Nuno Santos.

compensation returned

The General Inspectorate of Finance (IGF) concluded, in a report made public this Monday, the “nullity” of the agreement between TAP and Reis and that the airline has the right to claim the return of most (about 450,000 euros) of the compensation that was paid, updated Medina. The IGF also detected “serious deficiencies” in the relationship between the TAP administration and the State, as the sole shareholder of the airline, and it turned out that its performance was “evaluated”, which led the Executive to decide the dismissal of the two maximum managers of the company.

The minister said that they will not be entitled to receive any compensation, since it is considered a “fair” dismissal, although he recalled that Ourmière-Widener and Beja can appeal the decision in court. The rest of the administration, at least for now, will remain in office. The new leader of TAP will not receive any bonus for the exercise of his duties, as was provided for the previous CEO.

TAP is owned by the Portuguese state, which currently holds 100% of the capital after increasing its position to save it after the damage suffered by the pandemic, and the airline is under a restructuring plan. The Portuguese Executive plans to launch the company’s reprivatization process shortly, for which the Spanish-British group IAG – parent company of Iberia, British Airways and Vueling -, Air France and Lufthansa have already expressed interest.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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