Former TAP SGPS associates step down from their positions.
TAP SGPS, now Siavilo, faces a court order to pay €177-€235m to Azul
Siavilo SGPS, previously known as TAP SGPS, is currently in a tight spot. They've been ordered to cough up a hefty sum of around €177 million (potentially reaching €235 million with interest), all owed to the Brazilian airline Azul by June 23, 2025. These funds stem from a 2016 loan agreement involving the Portuguese state holding company, Parpública, and Azul [1][3].
This move comes as the administrative bodies of Siavilo have resigned en masse between March and June 2025, leaving the company without a management team or a fiscal board. Worryingly, there have been reports of asset stripping [3]. These complications raise questions about Siavilo's ability to meet its financial obligations, making it uncertain whether Azul will recover the owed amount.
Azul itself is in a precarious financial situation, having filed for Chapter 11 bankruptcy protection in the U.S. in May 2025 [2][5]. Interestingly, the airline's owner, David Neeleman, once had significant stakes in both Azul and TAP through the Atlantic Gateway consortium [1][3].
Struggles with SIAVILO hamper TAP's Privatization
The ongoing debt issues and uncertainty regarding Siavilo's solvency are causing roadblocks in the Portuguese government's plans to re-privatize TAP Air Portugal. The state aims to sell between 49% to 100% of TAP's capital by the end of 2025, eyeing a strategic partner committed to maintaining the airline's hub in Lisbon and preserving key North American and Brazilian routes [1]. However, the delay in the full privatization process due to political resistance, coupled with the tumultuous situation at Siavilo, make for an uphill battle in securing a successful sale [3].
In a nutshell, Siavilo's mounting debt to Azul, coupled with the risk of default, brings additional financial and reputational risks that could deter potential investors, making TAP's privatization process for the Portuguese government even more complicated [1][3].
While we await more updates, let’s remember that TAP has already acquired 100% of shares in UCS, Portugal's healthcare provider, and Cateringpor, which should pave the way for TAP's re-privatization, if issues with Siavilo can be resolved [4].
Footnotes:
[1] [Newswire] (May 27, 2025). "TAP Air Portugal: Azul's €180m Claim Against Portuguese Airlines Puts Re-Privatization in Jeopardy". Retrieved May 27, 2025, from
[2] [The Wall Street Journal] (May 10, 2025). "Azul Files for Chapter 11 Bankruptcy". Retrieved May 11, 2025, from
[3] [Expresso] (June 10, 2025). "Poucos dias para Siavilo pagar €177 milhões para Azul". Retrieved June 10, 2025, from
[4] [Reuters] (January 14, 2025). "TAP Air Portugal finalizes acquisition of healthcare firm, catering unit". Retrieved January 14, 2025, from
Additional Reading:
New images depict a TAP survivor escaping from the wreckage of a downed plane. Check out [Lusa] for details.
- The Portuguese government's plan to re-privatize TAP Air Portugal faces hurdles due to Siavilo's debt issues with Azul, posing financial risks that might discourage potential investors.
- The government's quest for a strategic partner to buy between 49% to 100% of TAP's capital by the end of 2025 could be complicated by the instability in the financial sector, as Siavilo, a former subsidiary of TAP, owes a substantial sum to Azul.
