The European Commission approved this Wednesday the plan of recapitalization of the Finnish airline, Finnair, in the amount of 286 million euros. The recapitalization involves the Finnish State's subscription of new shares, which were issued on 10 June, following the economic crisis caused by Covid-19.
In a statement, Margrethe Vestager, executive vice president of the European Commission, and commissioner for competition, said that “Finnair provides the domestic and international connections that Finland needs. Due to the country's geographic location, the national economy and many jobs, as well as the development of international trade, fall on these services [from Finnair] ”.
"The public contribution of 286 million euros to the recapitalization of Finnair will help the company in a company that was particularly affected by the coronavirus crisis", said the European commissioner.
The Commission's note also explains that the capital increase in Finnair should approach 500 million euros and that the State, the majority shareholder in the airline, with a 55,8% position, should receive subscription to new shares in the amount 286 million euros. The remaining shares will be traded on the market.
The Commission had already approved a € 600 million loan from Finland to Finnair in order to mitigate the economic impact of Covid-19 on the airline.
This Wednesday, the Commission gave the green light to the Government's request to support TAP in the amount of 1,2 billion, considering that the plan allows “immediate liquidity without distorting” the competition rules. The Brussels announcement explains that Portugal has guaranteed that TAP will return the loan or will have to submit a restructuring plan in six months.