Portugal's High-Flying Sale: TAP's Privatisation Takes Off

Portugal has relaunched the privatisation process for its national flag carrier, TAP, with the government aiming to sell a 49.9% stake, including shares for employees. Prime Minister Luis Montenegro highlighted this as a move to enhance the airline's sustainability and profitability while ensuring the nation's economic growth.

This decision has attracted the attention of major European airlines such as Lufthansa, Air France-KLM, and British Airways owner IAG. Air France-KLM expressed a clear interest in the stake, while IAG has yet to commit, and Lufthansa has not commented. The privatisation intends to secure a strategic partner who can contribute to TAP's enduring success.

TAP's vital slots to Brazil, Portuguese-speaking African nations, and the U.S. make it an attractive acquisition target. Despite significant losses during the pandemic, TAP returned to profitability, transporting over 16 million passengers in 2024. The privatisation process, however, faces potential political hurdles in parliament.

(With inputs from agencies.)