Flights were disrupted today as pilots working for the Portuguese airline TAP began a 10-day strike as part of their dispute with the government.
One in three flights were cancelled, a spokesman for the state-owned airline told AFP, adding however that at least 10 per cent of its 300 scheduled flights were expected to run.
The pilots accuse the government of reneging on an agreement to set aside between 10 and 20 per cent of TAP's capital for employees in its planned privatisation and of not reinstating seniority bonuses frozen in 2011.
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TAP management estimates the strike could cost the airline USD 78 million while the prime minister said on Wednesday it could have a "significant impact on the national economy".
The country's centre right government is putting 66 per cent of the company up for sale between now and the end of June.
An earlier attempt at privatisation failed in December 2012.