Portugal's TAP Air Sale: Government Wants to Retain Control Amidst International Interest
Simple Flying8 months ago
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Portugal's TAP Air Sale: Government Wants to Retain Control Amidst International Interest

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Summary:

  • TAP Air Portugal is one of the last independent airlines in Europe, attracting interest from major airline groups.

  • The Portuguese government wants to retain a 51% stake in TAP to maintain control.

  • The IAG finds the government's stance makes acquisition offers unattractive.

  • Approximately 12 parties have expressed interest in acquiring TAP.

  • The future of TAP remains uncertain as the government has not disclosed its plans.

TAP Air Portugal's Situation

TAP Air Portugal remains one of the few independent airlines in Europe, attracting interest from major airline groups like Lufthansa, Air France-KLM, and the International Airlines Group (IAG). These groups see TAP as a strategic asset to enhance their networks in South America.

TAP Air Portugal Plane Photo: Alberto Loyo | Shutterstock

Government's Stance

The Portuguese government is dissatisfied with the current offers, as it wishes to retain 51% ownership of TAP, ensuring that it maintains control over its operations and strategic direction.

IAG's Perspective

IAG has indicated that retaining a stake makes any acquisition unattractive. They have expressed that their buying strategy is aligned with enhancing their network value, rather than acquiring for the sake of it.

Other Stakeholders

While the Lufthansa Group and Air France-KLM have not publicly reacted to the government's position, they have historically been open to smaller stakes in partner airlines, which may affect their future strategies regarding TAP.

Interest from Potential Buyers

According to Infrastructure Minister Miguel Pinto Luz, around 12 parties have expressed interest in acquiring TAP, but the new government has yet to disclose a clear plan regarding the sale, leaving the future of TAP uncertain.

Conclusion

As the situation develops, TAP Air Portugal's ownership and strategic future remain pivotal topics in the European aviation market. The government's desire to keep a majority stake could complicate negotiations with interested buyers.

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