Portugal Evaluates Sale of at Least 49% of TAP Air
Portugal is considering the sale of at least 49% of the state-owned airline TAP Air as part of a new privatization attempt. According to sources close to the process, the Portuguese government could initiate the privatization in March, with the possibility of completing it by the end of this year or in 2026, Bloomberg reported.
Interest from Major European Airlines
Currently, around 12 companies have expressed interest in purchasing TAP. Among the potential buyers are some of the largest airlines in Europe, such as Air France-KLM, Deutsche Lufthansa AG, and the IAG group, which owns British Airways and Iberia. The main appeal of the Portuguese company lies in its position as the leading European provider of air connections to Brazil. Additionally, it maintains a strong presence in Africa and operates numerous flights to North America.
→ JetBlue Announces Reciprocal Loyalty Benefits with TAP Air Portugal
TAP in the Context of European Aviation
TAP is one of the few state-owned airlines still available for privatization in Europe. Currently, the commercial aviation market on the continent is dominated by three major airline groups. Lufthansa, for example, completed the acquisition of a minority stake in ITA Airways (Italy) in January, while in 2023, Air France-KLM purchased a portion of the Scandinavian airline SAS.
Strategy of the Portuguese Government
Portugal’s Prime Minister, Luís Montenegro, who took office in April, has emphasized the importance of maintaining TAP’s hub in Lisbon and preserving strategic routes for the country. The previous administration had proposed selling at least 51% of the airline in a privatization plan announced in 2023. However, Montenegro might opt for a minority sale to avoid political opposition in parliament, which could block the sale of a majority stake.
Importance of TAP for Portugal
Beyond its role in tourism, which has seen significant growth in Portugal, TAP plays a crucial role in connecting the country with its global diaspora. Additionally, it is a vital link for mobility between the mainland and the archipelagos of Madeira and Azores, located in the mid-Atlantic.
The potential sale of TAP would mark a milestone in European aviation and could redefine connectivity between Portugal and its key international markets.
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