Portugal Relaunches 49.9% TAP Air Portugal Stake Sale

The Portuguese government has officially restarted the privatization process for TAP Air Portugal, aiming to sell a 49.9% stake in the national carrier. The plan includes selling up to 44.9% to one or more investors and reserving 5% for TAP employees.

Approved by the Council of Ministers, the privatization decree was presented on July 10 by Finance Minister Joaquim Miranda Sarmento and Infrastructure Minister Miguel Pinto Luz. The move marks a renewed effort to attract strategic investment while maintaining state control of the airline.

The government seeks investors who will preserve the TAP brand, expand the airline’s fleet, and maintain key routes, especially to Portuguese-speaking countries. Bidders are also expected to support local sustainable aviation fuel (SAF) initiatives and maintain operations at Lisbon, Porto, and Faro airports.

Portugal aims to recover its EUR 3.2 billion (USD 3.7 billion) investment made to rescue TAP during the COVID-19 pandemic. Although the airline has been valued recently, the government has not disclosed the figures.

Once the decree is signed into law by the president, interested investors will have 60 days to prequalify and 90 days to submit non-binding bids. The entire process is expected to conclude within one year.

Potential buyers include Lufthansa Group, Air France-KLM, and IAG International Airlines Group, all of which have previously shown interest. Sarmento emphasized that there is no preferred bidder and that the government will proceed with the offer that delivers the most strategic and financial value.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com