TAP - Air Portugal

TAP ¿ Air Portugal was Portugal¿s main airline, responsible for carrying the Portuguese flag and colours since 1945. TAP had been privatized in 2015 (the Portuguese Government owned 50% of the capital from 2016 onwards) in the hope that it would correct most inefficiencies that were inherent to public management. However, in 2020, the company was still increasing its debt level, and the pandemic caused by the SARS-CoV2 virus, that reduced the air traffic in over 90%, was determinant to warrant an intervention from the Portuguese Government to save the company. Should the Government save the company or let it declare bankruptcy? What was at stake, and what was the best course of action?