Portugal's government has launched a fresh bid to privatise the country's flag carrier TAP, stating that it aims to sell a 49.9% stake within a year's time, and could then consider offloading more of the airline's capital.
Portugal's Prime Minister, Luis Montenegro, expressed confidence that the planned partial sale would attract numerous interested parties. In a televised statement, he announced the decision to open up to 44.9% of the company's capital to one or more investor, with an additional 5% allocated to workers.
Portugal named Montenegro, of the country's Social Democratic Party (PSD), as Prime Minister in March 2024. Montenegro had reportedly expressed interest in fully privatizing TAP in December 2023, prior to being elected.
TAP has been seeking buyers from the aviation sector that are aligned with its strategic goals, attracting interest from the three major European airline consortiums - the International Airlines Group (IAG), the Lufthansa Group, and Air France-KLM.
All three have been in discussion with the Portuguese government over the past year regarding the sale of TAP.
The Portuguese government said candidates must present a plan to preserve TAP's assets, such as key slots to Brazil, Portuguese-speaking African countries, and the US from its Lisbon hub.
Just last week, Air France-KLM chief executive Benjamin Smith noted that the group's plan to purchase a majority stake in SAS will not hold any influence over the potential purchase of Portuguese flag carrier.
“This has no impact on what may take place in other markets,” Smith said, while acknowledging the strategic importance of the Iberian Peninsula, emphasising the significance Lisbon holds in terms of geographic value, acting as a gateway connecting Europe to South America.
Smith noted that any decision by Air France-KLM to participate would depend entirely on the terms set by the Portuguese state.
The Portuguese government said it would consider bids from any kind of entity, including airlines and investment funds, from anywhere in the world.
The privatisation of TAP has long been delayed. In May last year, TAP's CEO and chairman Luis Rodrigues had told Airline Economics that it was likely to “come out before summer”. However, it came amid the country naming its new centre-right leader Luis Montenegro of the Social Democratic Party (PSD). A person familiar with the matter at the time said the government was in disarray with the Democratic Alliance – made up of the PSD and two smaller conservative parties – earning only a narrow victory, and opined that it was unlikely any sale would complete in 2024, which was proven to be true.