The Portuguese government has been toying with the idea of privatizing the airline TAP Air Portugal for some time. It has now relaunched that operation. In the process, 49,9% will be sold.
Major European airline groups, such as Air France-KLM, IAG (British Airways, Iberia) and Lufthansa are interested. “We believe we can complete the privatization within a year,” Infrastructure Minister Miguel Pinto told reporters.
Loss during the pandemic
TAP Air Portugal had to be hastily nationalized in 2020 during the Covid-19 crisis. In the process, 3.2 billion euros of public money was pumped into the airline. According to Portuguese Prime Minister Luis Montenegro, 44.9% is now available to one or more investors and 5% to the airline’s employees.
TAP is the largest European provider of flight connections to Brazil. The airline, which also flies to and from Brussels Airport, and has other attractive assets, including Portuguese-speaking African countries such as Angola and Mozambique, as well as the United States, carried 16 million passengers last year. It has been profitable since 2022.
IAG frontrunner
According to Air Data News, more than a dozen interested parties have expressed interest in acquiring the airline. Lufthansa, for example, is interested in a 19.9% stake in TAP, which would avoid the need for European Commission approval, as the stake would be below the 20% limit.
According to analysts, IAG presents the best opportunity for a majority or significant minority stake. Its strong position stems from the successful integration of Iberia and the strategic complement of TAP’s hub in Lisbon, particularly in relation to Latin America.
Other sources cite Humberto Pedrosa, the former owner and a prominent Portuguese entrepreneur best known as the founder and owner of the Barraqueiro Group, as a contender. He and a US private equity firm are reportedly considering a €5 billion bid. Although he is likely to still be outbid by players such as IAG, Lufthansa, and Air France-KLM, he is the third serious candidate.
118 aircraft, 8,000 staff
TAP currently operates with approximately 118 aircraft, comprising long-haul aircraft (A320/A321/A330 series) and regional Embraer jets. As of the end of 2024, TAP employed around 8,000 staff.
