The Portuguese government has outlined the requirements for the sale of a stake in state-owned TAP Air. This is a decisive step before the formal call for bids is launched, with a clear focus on ensuring the company’s expansion and solidity.
Who can participate in the bid
Only airlines, or consortia led by them, with annual revenues exceeding 5 billion euros ($5.9 billion) in at least one of the last three fiscal years will be permitted to submit proposals. The evaluation of offers will consider three key criteria:
- The strategic growth plan for TAP.
- The price offered for the stake.
- Commitments to expand the fleet.
→ TAP Launches Direct Flights Between Terceira Island and San Francisco
Key conditions of the sale
The administration of Prime Minister Luis Montenegro plans to divest a 49.9% stake in TAP, with a 5% stake reserved for employees. Furthermore, the selected investor must guarantee and enhance connectivity with the archipelagos of Madeira and the Azores, as well as with Portuguese-speaking countries. The willingness of buyers to increase their stake in the future will also be evaluated.
Interest from major European groups
Among the potential candidates, three European aviation giants stand out: Air France-KLM, Deutsche Lufthansa AG, and International Airlines Group (IAG), the parent company of Iberia and British Airways.
TAP’s main appeal lies in its position as the European leader in connections to Brazil, in addition to its strong presence in Africa and routes to North America.
Recent results
In 2024, TAP carried 16 million passengers, representing a 1.6% increase compared to the previous year. The company had returned to profitability in 2022 after five years of losses and has remained profitable since then.
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