Portugal Revives TAP Airline Privatization Amid Strong Interest

Portugal's government is renewing efforts to privatize its national airline, TAP, by selling a 49.9% stake. Major European airlines have shown interest despite TAP's financial struggles during the pandemic. The government aims to complete the process within a year, targeting strategic synergies with a new partner.

In a significant move, Portugal's government announced the relaunch of the long-delayed privatization of national airline TAP, aiming to sell 49.9% of the company. The decision comes with hopes of strategic partnerships and widespread interest from major European airlines, despite TAP's previous financial turmoil during the pandemic.

The Portuguese Prime Minister, Luis Montenegro, expressed optimism about attracting multiple interested buyers for the partial sale, even offering a 5% stake to employees. Major airlines like Lufthansa, Air France-KLM, and IAG have already shown interest, though the latter remains cautious, waiting for more details.

The government believes the move will strengthen TAP by fostering synergies with a strategic partner. Infrastructure Minister Miguel Pinto Luz highlighted key assets, including valuable slots to Brazil and the U.S., and aims to complete the process within a year while considering non-European airline bids.

(With inputs from agencies.)