Portuguese carrier TAP is to establish a maintenance centre at Porto, in the north of the country, which is scheduled for completion in 2028.
The engineering hub will be able to accommodate two Airbus A321-sized aircraft.
TAP says the plan is a “decisive step” for its expansion strategy in the region.
It will enable the airline to “internalise major fleet inspections” and cut operating costs, while creating around 200 specialist positions.
The investment is part of a broader plan to reinforce operations at Porto.
This will include expanding its route network from the city. It has flights to four intercontinental destinations – New York, Rio de Janeiro, Sao Paulo, and Luanda – and new services to the Azores and Cape Verde will begin in July.
TAP is also establishing a year-round connection to Boston.
“In its strategic plan for the next three years, TAP also plans to launch other new intercontinental routes,” it adds.
