Connect with us

Economy

Sergio Palma Brito. “Now the problems for TAP begin”

Published

on

Sergio Palma Brito.  "Now the problems for TAP begin"

Although the Commission has given TAP the green light for the restructuring program, the carrier’s future is not guaranteed. “State aid approved by the Commission guarantees the airline a path to long-term viability. This viability is ensured by a TCH with a qualified state shareholder, independent and responsible management and motivated workers. None of these requirements are duly guaranteed. ”- guarantee provided by Nascer do SOL Sergio Palma Brito, author of the book TAP que futuro? How did we get here?

However, the airline will have to allocate 18 slots at Lisbon airport. A claim from low-cost airlines such as Ryanair and easyJet. However, he is exempted from further layoffs, lower wages, or return of aircraft.

The Irish airline has already asked the European Commission to vacate about 5% of the TAP slots at Lisbon airport by next summer, instead of postponing it until November. “The Commissioner’s decision to postpone this 5% minimum supply, equivalent to 18 day time slots, from summer to winter 2022 will further undermine competition and consumer choice in Lisbon and delay the recovery of Portela airport during the pandemic,” said Ryanair Group CEO Michael O’Leary.

TAP’s minority stake in Groundforce (49.9%) will only be sold if the conditions for TAP are “satisfactory,” the Infrastructure Minister said. “That’s why we say we’re not going to fast a little,” he said.

Focus on business strategy

Once this impasse is overcome, a business strategy must emerge that catalyzes the joint efforts of shareholders, managers and workers, according to Sergio Palma Brito. “Priority to the Lisbon hub seems to be guaranteed as the ‘territorial cohesion’ routes from Porto and Faro have been abandoned, adding that“ several intercontinental flights from Porto exist to the extent that demand is not cannibalized. what are the hub flights. “

The aviation specialist recalls that the 1994 decision of the European Commission was based on the government’s commitment to privatize TAP from 1997. In 2019, the restructuring plan is based on a state-owned company. “There is a tactical reference to privatization where the minister says that“ the airline cannot survive in isolation ”in the current situation and that the strategy was to work so that the company remains“ in a solid aviation group, ”pointing to the Lufthansa Group.

See also  Ascendi prefers and owns 25% of Via Verde - Transports.

“Is the company in this group state-owned or privatized? The viability of TAP assumes a privatization of at least 80%. TAP’s focus on aviation seems to imply that TAP should leave Maintenance Brazil, Groundforce and Cateringpor welcome, ”he says.

Regarding the loss of slots, the person in charge believes that it does not seem significant, and the size of the TAP, measured in terms of passengers per kilometer and occupancy, is ultimately a result of the market. “Last but not least, TAP will not be able to receive new state aid for ten years. Anyone who survives will see it, and Commissioner Vestager will say that she only made travel possible, not the feasibility of TAP, ”he told Nasser do Sol.

Injection and potential stakeholders

Also this Friday, the finance minister guaranteed that TAP will receive new cash injections from the state by the end of the year. “After the European Commission approves the restructuring, we will invest another 530 million over the next week,” said João Leau.

Pedro Nuno Santos said € 3.2 billion could be enough to make TAP viable. But he left a warning: “If there are no more serious shocks in the context of the next few years, this figure will be more than enough” and recalled that “the final recipient of this investment is indeed the Portuguese economy. Consequently, the Portuguese will benefit if TAP continues to serve the Portuguese economy. ”

And he gave the numbers: a company that exports 3 billion euros, which buys 1.3 million euros a year from various national companies. “It has a huge impact on the national economy.” An argument that is in line with the European Commission’s claims that TAP “plays a fundamental role in the growth of tourism and the Portuguese economy in general and is an important employer in Portugal” as it has over 50 employees in 2019. % of arrivals and departures at Lisbon airport, hence the approval of the new Portuguese regime.

See also  The Fed raises interest rates by 75 points. Such aggressiveness has not been seen for 28 years - Monetary Policy

The minister acknowledged that six people are interested in the national airline. “We believe that TAP should be part of the group. There are several interested in TAP. There are six, three funds and three aviation groups. ” Pedro Nuno Santos says that “to run a business, you need to partner with an aviation group that understands the sector.”

It should be remembered that the amount approved by the European Commission is divided between 2.55 billion for restructuring and returning the company to viability, and 107.1 million for compensating the company for damages caused by the pandemic in the period from the beginning of July to the end of December 2000. “Today is a very important day for TAP, the country and the Portuguese government,” said the Minister of Infrastructure, adding that the arguments were well received and the results are good. “The Portuguese government’s job is done.”

As a reminder, the airline has already received emergency funding of 1,200 million euros in 2020, to which it added 462 million euros in 2021. However, the minister guaranteed that a loan of 360 million euros will now be taken from individuals. in the period from 2021 to 2022, which will have 90% of government guarantees.

Dead end

At the end of last week, Antonio Costa guaranteed that he would refuse to fall into alarmism and “serenely” awaits the decision of Brussels. “I know we have a reliable business. We know that the dialogue with the European Commission was quite intensive, ”he only said.

The prime minister’s reaction came after the Minister of Infrastructure and Housing announced that the airline would be closed if the plan was not approved. “We are talking about the only airline operating in Portugal that has a hub that operates intercontinental flights between Brazil, the United States, Africa and Portugal and delivers to the rest of Europe,” the official said.

See also  China insists against foreign cryptocurrency and threatens to freeze portfolios in the country - markets

The government submitted the TAP restructuring plan to the European Commission a year ago, while at the same time taking measures such as layoffs of workers. After the European Commission approved government support for TAP of up to € 1,200 million on June 10, 2020, the company had six months to submit a restructuring plan that would convince Brussels that the company would have future viability.

Back in August, the European Commission acknowledged that it feared TAP’s $ 3,200 million in restructuring assistance would be a breach of competition rules, a complaint that has been repeated by other airlines such as Ryanair.

Brussels also said it doubts the 3.2 million-strong support will guarantee the company’s viability once and for all, despite the recognition of the importance of the Portuguese government bailing out the airline. The government has a different understanding, which states that “in this way TAP will be properly capitalized to be able to continue its activities, making a significant contribution to the Portuguese economy.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Miners and companies leave the cryptocurrency market en masse because it does not bring profit

Published

on

Mineração de criptomoedas

As we have been reporting over the past few weeks, the cryptocurrency segment is going through a less fortunate phase, with the valuation of currencies plummeting, leaving investors wary.

In this sense, this reality has several implications, including the fact that miners and companies operating in the sector are leaving the cryptocurrency market en masse as their mining is no longer profitable.


Miners and companies say goodbye to the cryptocurrency market

The cryptocurrency market is going through hard times and in particular, bitcoin, the most popular digital currency in the world, fell below $20,000 last Saturday (18), showing lowest value since December 2020. Not at the time of this writingthis cryptocurrency is worth $21,347.03.

So we are now seeing some of the repercussions and reactions to this fall in digital currencies. Recently, for example, we reported that we witnessed video card wholesale used for cryptocurrency mining.

And the latest news goes even further and indicates that, including due to the increase in the price of electricity, miners and companies investing in the cryptocurrency segment are now massively leaving that same market, since it has ceased to be profitable.

As you can see from the chart above, the TWh energy consumption related to Bitcoin had an interesting increase between mid-2021 and early 2022. But after some stable time, the same consumption has fallen sharply in past times.

At a peak of around 200 TWh, this consumption was the same as that spent by entire countries such as Argentina. Another interesting comparison is that this same consumption is equal to the amount of electricity consumed by all data centers around the world in a year.

But at the moment, even large companies that are betting on the practice of mining digital currencies are leaving this sector because they believe that it is currently a big problem when they cannot make a profit and bear the daily costs.

In addition, the energy consumption associated with Ethereum ends up having the same characteristics. As you can see in the chart above, there was a significant increase in January, which slowed down in recent weeks and then fell sharply.

See also  China insists against foreign cryptocurrency and threatens to freeze portfolios in the country - markets
Continue Reading

Economy

Prices have risen and uncertainty about the future advises saving. Find out how and where

Published

on

Prices have risen and uncertainty about the future advises saving.  Find out how and where

CNN Portugal spoke to an economist to see if the country should brace for a recession and put together some savings tips that could help mitigate the effects of a possible protracted economic crisis.

With a war in Ukraine with no end in sight, the times ahead will be challenging. Inflation continues to rise, while fuel, housing and raw materials lag behind. More and more important, though more difficult, is conservation.

Is a recession coming? According to Ricardo Ferras, professor of economics at the University of Lusofon and ISEG researcher, it is too early to talk about this scenario. “We know that the most recent forecasts from international organizations point to a slowdown in the Portuguese economy over the next few quarters. But, at least for now, they don’t see the country going into recession.”

“However, there is a huge unpredictability in the world, so any macroeconomic scenario has a high degree of uncertainty. and investments,” he added.

According to the economist, “a protracted economic downturn will certainly be synonymous with deep destruction of wealth. If household consumption and corporate investment collapse, there will be bankruptcies and layoffs.”

Since the beginning of the year, everything has risen in price and revenues do not keep up with this growth. According to a report by Ricardo Ferras, “Food and drink rose 7.6%” and combined “housing, water, electricity, gas and other fuel prices rose 7.7%.” Only fuel increased by “an astronomical 20%”. And all this within five months.

To try and alleviate these difficult times ahead, CNN Portugal also spoke to Natalia Nunez of Deco’s financial protection team. Despite the difficulties, there are exercises that can be done daily and that can save tens of euros at the end of the month.

From housing, fuel and grocery shopping, here are some of the specialist’s recommendations.

See also  The most trending brands for Portuguese consumers - Marketeer

Public transport or own car?

  • follow public transport user, the main advice is to find the pass that best suits your needs if you are not a Unified Social Pass user. “Sometimes there are municipalities that do some kind of discount for people over 65 or for young people, and people don’t know about it,” recalls Deko;
  • If you live relatively close to work, you can always choose to walk or bike;
  • If you really need to use own car, since there is no public transportation that gives the answer, decide to share the car with other people, whether they are colleagues or friends who work in the same place or in the same area. So you can split the cost of fuel or tolls;
  • Before fill the car, always try to compare prices at different gas stations and choose the one that offers the most affordable prices. O website of the Directorate General of Energy and Prices can help you in this search;
  • Avoid using the car for short distances that can be covered on foot;
  • try to have one economical driving: Avoid aggressive driving, try to maintain a constant speed and do not always accelerate and brake. Keep engine RPM as low as possible by using higher gears to keep RPM low.

Prepare for a trip to the supermarket

According to Natalia Nunez, it is “important for families to know how much they spend on food every month” in order to be able to set savings goals. After this analysis, here are the most practical tips:

  • Make a list before you go shopping. And maybe it’s not a good idea to do it in your head. It’s best to look in your pantry and write down what you really need so you don’t buy items that you end up having to spend or use;
  • Make a meal plan it can also help to create an even more stringent shopping list because you end up only buying what you know you’re going to eat;
  • Set a budget. Do not shop without setting a limit on the amount you are willing or able to spend. According to Natalia Nunez, “it’s important to shop for a while” in order to “be able to see and compare all the prices.” Don’t forget that the cheapest prices are not always at eye level on the shelves, they can be higher or lower;
  • Don’t be tempted by promotions. It is important to have an idea of ​​the original price of the non-promotion product in order to know if advertising is really paying off, even if they are promotions packages;
  • Still in the field of promotions you should be aware of product expiration. This is because it may be useful to take, for example, two detergents, but this does not apply to yogurts. If the deadline is too short, “we run the risk of spending the money”;
  • Don’t go to the supermarket hungry. This is one of the factors that tends to induce the consumer to buy more than he really needs.
See also  Potential overpricing of housing requires monitoring, says Banco de Portugal - O Jornal Económico

Try to cook as much food as possible at home, trying to avoid food waste.

Is it time to reevaluate your mortgage?

Natalia Nunez reminds us that the most important thing in this area is “to look at the level of our efforts”. providing home loan should not exceed 35% of net profit. “This is the golden rule,” he explains.

If your mortgage payment is about 45% of your monthly net income, you should try to understand if your conditions match those of the market. If this is not the case, you should call the institution where you have a mortgage and try to renegotiate the terms.

You should also check if the spread matches the values ​​that are practiced in the market. As? Running some simulations on banks websites or on Banco de Portugal banking customer portal. These simulators can be used by anyone and are a “good source of condition checking”.

You should also check the amount of insurance associated with your home loan. When applying for a mortgage loan, an agreement is also concluded with an insurance company and, as a rule, people forget to check whether these values ​​are still being adjusted. The rule is the same as for the spread, simulate or contact insurance intermediaries.

What charges do you pay to the bank?

If you have a single bank account that always has a cost associated with it, namely maintenance costs, consider requesting that this account be converted to a minimum banking account. According to Decaux, this is a way to “reduce costs”;

See also  China insists against foreign cryptocurrency and threatens to freeze portfolios in the country - markets

You may have already wondered if it makes sense to have a savings account. Natalia Nunez believes that she does this only if “it’s not very expensive.” To do this, “we need to seek and negotiate.” However, a savings account remains the most efficient way to save some money.

If you do not have a savings account, you should not do two things: keep the accumulated money in a checking account, that is, in the account that you use every day; or even keep money in an envelope at home.

Continue Reading

Economy

The Bank of Portugal leaves notices. Falling home prices are a risk

Published

on

The Bank of Portugal leaves notices.  Falling home prices are a risk

Manuel de Almeida / Lusa

Mario Centeno, Governor of the Bank of Portugal

Banco de Portugal warns of risks and vulnerabilities in the economy that could disrupt financial stability, highlighting, in particular, housing prices, as well as declining household incomes and banking disruptions.

The Bank of Portugal (BdP) semi-annual financial stability report published this Friday presents falling prices in the residential real estate market as one of the biggest risks to financial stability due to “changes in funding conditions”.

The alert that appears when interest rates have risen after several years in the negatives.

“In the context of the recent higher growth in home credit, it is important to ensure that it does not play a decisive role for price dynamics in the real estate market“, notes the BDP.

The institution notes that “despite the uncertainty caused by the pandemic crisis, housing prices “continues to grow in Portugal”what is reflectiondemand for housing from non-residents“And from”supply shortage“.

Thus, it is extremely important that Bank loan Portuguese taxpayers will not affect housing prices, which will lead, for example, to a fall, the supervisory authority points out.

The BDP also rejects the prospect of a significant increase mortgage loan defaultOh, because of rising interest rates.

“Default issues, especially home loans, are closely linked to the labor market, and the labor market has shown a strong resilience that few expected“, – said the head of the BdP Mario Centeno at a press conference.

Centeno adds that forecasts for the Portuguese economy “demonstrate an evolution compatible with the resilience of the labor market, which very positive“.

See also  Rolling outages probably Tuesday immediately after Flex Inform issued

Declining household disposable income

The BdP report also warns of the risk of a deterioration in the economic situation of families due to “decline in real disposable income“due to inflationand the impact of higher interest rates on debt service, to which is added uncertainty about the evolution of economic activity and employment.”

The BJP governor says he is not ignoring the fact that the monetary policy normalization launched by the European Central Bank in December 2021 includes an interest rate hike cycle “because very negative interest rates did not create favorable conditions for economic growth and financial stability, especially if they continued for a long time.” However, he points out that it is necessary to ensure that there are “sufficient tools to support this change in the monetary policy cycle“.

companies default

The BdP also highlights the increased likelihood of companies defaulting due to the macroeconomic environment with inflationary pressureas one of the main financial stability risks.

The report states that this default risk is due to the “combined effect financial vulnerability of some companiesincomplete recovery of activity and profitability of some sectors in post-pandemic“, as well as “the current macroeconomic and financial structure”.

Continue Reading

Trending