Portugal Reignites TAP Privatisation Amid Strategic Partnerships

Portugal's government is set to resume the long-postponed privatisation of its national airline, TAP, by offloading a 49.9% stake, including a 5% share for employees, as announced by Prime Minister Luis Montenegro on Thursday. "We've invested heavily and cannot continue to do so without a sustainable plan," Montenegro stated during a televised address.

Interest from major European airlines such as Lufthansa, Air France-KLM, and British Airways parent company IAG has been significant, with discussions held over the past year. Montenegro emphasized TAP's key role in the country's economy and future growth through strategic partnerships, aiming to enhance the airline's sustainability.

TAP is noted for its valuable flight slots to Brazil, Portuguese-speaking African nations, and the US from Lisbon. The airline, crucial for Portugal's flourishing tourism industry, suffered losses worth 1.6 billion euros in 2021, leading to state intervention and eventual turnaround. However, privatisation attempts were delayed by political instability but are now back on the agenda following recent elections.

(With inputs from agencies.)