Antonio Cardoso e Cunha will step down as chairman of state airline TAP-Air Portugal, a government spokesman said on Friday.

The resignation is part of TAP's restructuring, which began several years ago, the spokesman for the Ministry of Public Works said. His replacement was not named.

Cardoso e Cunha has clashed publicly with TAP Chief Executive Fernando Pinto, who has overseen a turnaround to profitability. In one incident this year, they disagreed over forecasts of 2003 results.

Cardoso e Cunha joined TAP in 2002 after serving as Portugal's minister of agriculture, European commissioner and commissioner of the Expo 98 international exhibition.

In March, TAP posted net income of EUR19.7 million (USD$2401 million), after four years of losses.

(Reuters)