The measure involves an “extension of maturity, with the state’s guarantee requested for the execution of this operation,” according to a resolution published in the Official Gazette, which enters into force today.
“The overall term of the operation is 122 months, in accordance with the repayment plan approved by the creditor bank,” the document states.
The guarantee is part of the “Interim Business Plan” 2023-2027 for TACV, a company that only operated international flights until it was called upon to undertake domestic flights as well, following the collapse of the concession to BestFly in 2024.
According to the latest figures published in a state report on the business sector, the company recorded a net loss of 6.1 million euros in the third quarter of 2024 and is among the public companies with the greatest risks.
Despite demonstrating “robust operational performance,” a “sustained recovery trajectory,” and “significant growth potential,” profitability was affected by “total operational expenses of 1.9 billion escudos (17.2 million euros), highlighting leasing costs that reached 575 million escudos (5.2 million euros), which continue to represent a significant burden,” the document notes.
Various entities have suggested that TACV focus on eliminating chronic failures in domestic flights, in which it holds a monopoly, while abandoning foreign connections, where it faces increasing competition from European low-cost airlines.
The Government has responded that caution is necessary regarding excessive dependence on low-cost airlines for international air transport in an archipelago with a strong diaspora.
