Portugal's TAP Privatisation: A Global Aviation Opportunity

In a significant move, Portugal announced the privatisation of its national airline, TAP, expecting to attract bids from major carriers within and outside the EU. Prime Minister Luis Montenegro highlighted the airline's untapped potential, asserting its attractiveness for global integration.

The re-launch aims at selling a 44.9% stake, offering a 5% allotment to TAP employees, to position TAP within a larger airline group, enhancing its competitiveness. Meetings have already been convened between the government and European aviation giants like Lufthansa, Air France-KLM, and IAG.

Air France-KLM expressed confirmed interest, anticipating detailed process outlines, while Montenegro hinted at possible non-EU bidders. Key assets include TAP's connections to Brazil, Portuguese-speaking African countries, and the U.S., with plans to expand airport capacities in Porto, Faro, and the Azores.

(With inputs from agencies.)