Portugal sets conditions for sale of state-owned carrier TAP

Portugal sets conditions for sale of state-owned carrier TAP

Lisbon — The Portuguese government has set the stage for the privatization of TAP Air Portugal (TP) by offering a 44.9% minority stake in the airline for US$817.7 million [1]. Additionally, 5% of the shares will be reserved for employees, while the government plans to retain the remaining stake to maintain majority control [1].

The privatization comes despite TAP's profitability and steady growth. The Portuguese government's primary objective is to bring in aviation experts from the industry to enhance the airline's efficiency and global competitiveness [1]. This move is expected to help TAP align more closely with other major carriers, thereby safeguarding national interests while maintaining control over the carrier.

Several European airline giants have expressed interest in acquiring a stake in TAP. International Airlines Group (IAG), Air France-KLM (AF-LK), and the Lufthansa Group (LH) are among the potential buyers [1]. Their interest is driven by TAP's strong transatlantic network, which positions Lisbon as a strategic hub linking Europe with Brazil, Portuguese-speaking Africa, and North America. Securing a stake in TAP would not only expand these groups' route maps but also prevent rivals from gaining control of a strategically placed airline with valuable long-haul traffic.

The government aims to complete the privatization process by early 2026. The move underscores Portugal's commitment to modernizing its aviation sector and ensuring TAP's long-term success in a competitive global market.

References:
[1] https://www.airwaysmag.com/new-post/portugal-tap-air-privatization