Portugal to Decide on Stake Sale in TAP After Receiving Competitors’ Proposals
Portugal’s Privatization Plan for TAP
Portugal’s Infrastructure Minister, Joao Galamba, informed a parliamentary committee that the decision on the size of the stake to be sold in TAP, the country’s flag carrier, will be made once competitors present their proposals. The government aims to privatize TAP by selling at least 51% of the struggling state-owned airline. The objective is to preserve the brand name while enhancing the company’s performance through private ownership.
Valuing TAP’s Strategic Routes
Galamba stated that Portugal wants potential bidders to assess the value of TAP’s strategic routes to Portuguese-speaking countries such as Brazil, Angola, and Mozambique. However, the exact stake to be sold cannot be determined until concrete proposals and potential improvements are known.
Timeline and Prospective Buyers
The government plans to appoint financial advisors soon and aims to finalize the privatization process by mid-2024. Lufthansa, Air France-KLM, and IAG, the parent company of British Airways, have shown interest in acquiring TAP. Galamba emphasized that TAP has a unique opportunity to choose a long-term partner, as it is one of the few remaining independent flag carriers in Europe.
These developments highlight the government’s commitment to revitalize TAP through private investment, ensuring its competitiveness in the global aviation industry. The sale of TAP’s stake will pave the way for new opportunities, facilitating growth and expansion of the airline’s operations.