Brazil’s Embraer interested in TAP-Air Portugal’s maintenance company in Brazil

6 June 2013

Brazilian aeronautical company Empresa Brasileira de Aeronáutica (Embraer) is interested in the maintenance group of TAP – Air Portugal in Brazil, said the chief executive Paulo Souza e Silva on the sidelines of the IATA general meeting in Cape Town, South Africa, according to Portuguese website Dinheiro Vivo.

Portuguese newspaper Público reported that the Portuguese government may accept handing over TAP Manutenção e Engenharia Brasil to Embraer in a no-cash deal, but in return for a commitment that Embraer would invest more in the factories it owns in Portugal, in the city of Évora.

TAP Manutenção e Engenharia Brasil, previously known as Varig Engenharia e Manutenção (VEM), was acquired in 2005 by a partnership made up of TAP – Air Portugal and investment company Geocapital, owned by Macau gaming magnate Macau Stanley Ho, has posted continual losses and has also had tax and labour problems.

This subsidiary of TAP, SGPS has had a significant negative effect on the group’s accounts, and in 2011 posted a loss of 62.7 million euros, which “despite everything was 14.3 percent better than the 73.1 million euro loss in 2010.”

Last weekend Portuguese weekly newspaper Expresso reported that the Portuguese government was due this month to receive preliminary proposals for the sale of TAP Manutenção e Engenharia Brasil, ahead of the sale of the TAP group, which was launched last year but was later suspended. (macauhub)