Portugal Moves Forward with Partial Privatization of TAP Airline
Público2 days ago
940

Portugal Moves Forward with Partial Privatization of TAP Airline

Economy
tap
privatization
portugal
aviation
economy
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Summary:

  • Portugal to privatize 49.9% of TAP, keeping majority control

  • Employees offered 5% stake in the airline

  • Process can be halted without financial penalties if strategic interests are not met

  • 3.2 billion euros in state aid previously injected into TAP

  • Air France-KLM, Lufthansa, and IAG among potential interested parties

The Portuguese government has approved the privatization of 49.9% of TAP's social capital, marking a significant step in the airline's restructuring. Prime Minister Luís Montenegro announced the decision, emphasizing it as the "kick-off of the first phase" towards privatizing the national carrier. The move aims to attract investment while ensuring the airline's strategic role in Portugal's aviation sector.

Key highlights of the announcement include:

  • The government retains majority control with 50.1% ownership.
  • Employees will have the opportunity to acquire 5% of the capital.
  • The process allows for the suspension or cancellation without financial penalties if offers do not meet strategic goals.

Montenegro expressed confidence in finding "many interested" parties, highlighting the airline's potential for growth and competitiveness. The decision follows years of state aid totaling 3.2 billion euros, underscoring the need for a sustainable and profitable future for TAP.

Finance Minister Joaquim Miranda Sarmento previously hinted at the strategy, noting the search for an international partner to expand routes and fleet. Potential candidates include major European airlines like Air France-KLM, Lufthansa, and IAG.

The detailed plan will be further explained by the ministers of Finance and Infrastructure in a press conference.

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