Had this EC amendment been adopted just a few months ago, the whole fuss over Neeleman and Pedroso’s takeover of TAP would have been avoided.
Brussels now wants to allow non-European investors to be able own more than 49% of any European airline and in return European governments must tighten up rules about state subsidies to the airline sector.
According to the Financial Times, the relaxation of the ‘controlling interest’ rules will take place through individual agreements with the countries. It is by no means certain all will agree.
In the case of the sale of TAP to the newly formed Atlantic Gateway company, David Neeleman of Brazil's ‘Azul’ had to wheel in Humberto Pedrosa, whose expertise is in coach transport, as the nominal 51% shareholder of Gateway to comply with EC regulations.
It has been clear from the start that TAP is Neeleman’s show and that Pedrosa, despite being pushed unwillingly into the limelight to make it look like he is in charge, was a necessary inconvenience but one that at least provided a Portuguese flavour to the Brazilian recipe.
Brussels was happy to play along with this obvious ruse by Neelaman and eventually gave the green light to the purchase of 61% of TAP by Gateway on November 12th, 2015.
The new investment environment for overseas companies to buy in to Europe’s lucrative airline sector will only be possible if countries agree to obey stricter rules on state subsidies provided to state airlines.
