Portugal Revives TAP Privatisation: A Strategic Asset

Portugal's government aims to privatise a 49.9% stake in airline TAP, including 5% for employees. Key assets include lucrative slots to Brazil, Africa, and the U.S. Major European airlines Lufthansa, Air France-KLM, and IAG have shown interest, engaging in discussions with officials.

Portugal's government has taken a significant step by relaunching the long-overdue privatisation of its national airline, TAP. The plan involves selling a 49.9% stake, with 5% earmarked for employees, Prime Minister Luis Montenegro announced on Thursday.

TAP's appeal lies in its valuable slots to Brazil, Portuguese-speaking African nations, and the U.S. from Lisbon, which the government intends not only to maintain but expand, showcasing TAP as a strategic international hub.

The privatisation process has piqued the interest of leading European airlines such as Lufthansa, Air France-KLM, and British Airways' parent company IAG, which have been in negotiations with the government over the past year.

(With inputs from agencies.)