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Lusa - Business News - Portugal: Injunction to prevent injection into TAP rejected




Lisbon,July 31,2020(Lusa)-The injunction filed by the Porto Trade Association(ACP) at the end of June to prevent the injection of capital into TAP was rejected on Wednesday by the Supreme Administrative Court (STA), the airline told the market on Friday.

According to a statement sent on Thursday by TAP to the Securities Market Commission (CMVM), on 29 July 2020 (Wednesday), the injunction was rejected by decision of the Supreme Administrative Court.

The company said that STA considered that it seemed likely that a request for an injunction not to grant or use the loan to TAP or, if the same were to be practised, the validity of its challenge would be justified.

The note stated that, in assessing the merits of the application for a precautionary measure, STA stated that the decision whether or not to support TAP translates into an administrative decision of full discretion and therefore its judicial control is very limited.

In addition, the Supreme Administrative Court clarified that the applicants did not plead any illegality to the act of granting the public loan itself, only understanding the applicants that the act should not be practised until the flight routes of the company receiving the loan are changed in the way they consider to be in their interest.

The communiqué TAP sent to the CMVM further explained that the STA considered that it was not within its competence to syndicate the legality of the administrative act granting the loan on the principle of good administration.

At the end of June, ACP filed an injunction with the Supreme Administrative Court, which was admitted, to prevent the injection of €1.2 billion by the state into TAP.

The legal grounds for the injunction were based on three essential arguments, including disrespect for the principle of territorial balance, given that TAP's flight plan concentrates 96% of international flights at the Lisbon airport, marginalising Porto airport and ignoring the others.

The defence of the principle of transparency, since, if the TAP is a private company, it should live off its resources, and the promotion of the principle of rationality are the other two arguments.

The ACP said that it would present within one and a half weeks a plan B to ensure the viability of TAP, even if it only focuses on Lisbon, and at the same time give express support to the other airports.

AFE/IMYN // ADB.

Lusa




Agency : LUSA

Date : 2020-08-01 09:54:00







 

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