Portugal has relaunched the long-delayed privatisation of its flag carrier, expecting to draw interest from airlines in Europe and beyond, reports industry outlet Travel Tomorrow.
The Portuguese government announced the privatisation campaign on Thursday, saying it aims to sell a 44.9-percent stake to an airline that can bring global scale and competitiveness to TAP. An additional 5 percent is being offered to the airline’s employees, with the Portuguese government retaining a controlling 50.1-percent stake.
Three major European airlines – Lufthansa, Air France-KLM and IAG, owner of multiple flag carriers – have met with government officials about TAP over the last year, and have largely confirmed that they remain open to purchasing a stake in the Portuguese airline.
Prime Minister Luis Montenegro, speaking at a news conference on Tuesday, said he also expects non-EU carriers to express interest in TAP, noting that the airline “has untapped potential that is very positive, attractive and valuable.”
TAP’s most attractive assets are its connections to Brazil, Portuguese-speaking African countries and the US, through its hub in Lisbon. Infrastructure Minister Miguel Pinto Luz emphasised that the government is seeking a partnership that preserves Lisbon’s role as an international hub, as well as the airline’s brand identity, while also granting the private partner significant managerial influence and maintaining key global routes.
[See more: A new international airport for Lisbon is on the horizon, Montenegro says]
“We believe we can complete the privatisation within a year,” he told reporters, affirming that non-EU airlines will be permitted to submit bids.
The government has no preferred bidder, Finance Minister Joaquim Miranda Sarmento confirmed, emphasising that the selection will come down to which proposal best protects TAP’s strategic network and supports its long-term sustainability.
First privatised in 2015, TAP began renationalisation in June 2020 due to the Covid-19 pandemic, becoming wholly state-owned in 2021 after reporting a 1.6-billion-euro loss (US$1.86 billion) for the year. Portugal bailed it out to the tune of 3.2 billion euros (US$3.72 billion) and undertook a years-long comprehensive restructuring plan.
TAP rallied quickly, returning to profitability in 2023 and generating 4.24 billion euros (US$4.93 billion) in revenue in 2024. Employing some 8,000 staff and a fleet of 99 mainline aircraft and 19 TAP Express planes, the airline carried over 16 million passengers last year.
Under the sale model, interested airlines will be able to partner with investment funds and private investors to submit a joint bid. Montenegro noted that the government reserves the right to withdraw from the sale if proposals do not meet its expectations and needs.
