TAP Air Portugal’s Privatisation to Begin by Mid-2025

The Portuguese government is preparing to privatise TAP Air Portugal, the country’s flag carrier, by the first half of 2025. Discussions are currently underway with several interested airlines to ensure that the privatisation aligns with both market expectations and national interests.

Prime Minister Luís Montenegro confirmed that the government is in the final stages of consulting with potential buyers. In an interview with broadcaster SIC, he highlighted that the sale process would not move forward without a clear understanding of the objectives of these market players. Montenegro emphasized the importance of ensuring that strategic routes and the Lisbon hub remain secure throughout the privatisation.

According to Infrastructure Secretary Hugo Espírito Santo, the framework for the privatisation will be finalised by December 2024. Speaking to the newspaper Faro de Vigo, he indicated that the government aims to define the terms, conditions, and restrictions governing the sale. Key airlines interested in acquiring stakes in TAP include IAG (International Airlines Group), Lufthansa Group, and Air France-KLM.

Lufthansa has reportedly shown interest in acquiring a 19.9% stake in TAP, just below the 20% threshold that would require approval from the European Commission. The specifics of potential stakes from IAG and Air France-KLM remain undisclosed, but IAG CEO Luis Gallego mentioned that while acquiring TAP is not critical for the group, they will explore the opportunity if it strategically aligns with their goals.

The privatisation process has sparked a debate in Portugal. While Prime Minister Montenegro advocates for full denationalisation of the airline, the opposition prefers a more conservative approach, favoring only partial privatisation. Montenegro clarified his stance by stating that full privatisation would be ideal as long as it safeguards Portugal’s strategic routes and maintains Lisbon as a key hub for TAP.

Despite differing opinions, Espírito Santo remains optimistic that TAP’s privatisation process will be completed by mid-2025, opening a new chapter for the state-owned airline. With several major European airlines expressing interest, the sale is expected to reshape the competitive landscape of the aviation industry in the region.

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