Government initiates the privatisation of TAP, a state-owned enterprise
The Portuguese government has recently announced its intention to sell a 49.9% stake in TAP Air Portugal, marking the return of private shareholders to the airline following its nationalisation in 2020 due to the pandemic's impact on air transport. This move is part of the first phase of the airline's reprivatisation, which has been a topic of discussion since 2023 but was halted with the fall of the last two Socialist Party (PS) and Social Democratic Party (PSD) governments.
Key details about the current status, involved investors, and the approval process have been revealed. The government plans to sell up to a 49.9% stake, with the aim of enhancing TAP's competitiveness and injecting capital. A condition for potential buyers is that TAP's headquarters and main operational hub must remain in Lisbon, ensuring strategic connectivity for Portugal.
Several major European carriers have expressed interest or are monitoring the situation. Lufthansa, Air France-KLM, and IAG (International Airlines Group) have all shown interest, with the latter stating it will carefully review the details and conditions of the sale.
While specific details about the decree-law governing the privatisation are not provided in the latest reports, the process involves a structured sale that must be approved by the necessary legislative bodies. The government aims to complete the first phase of the privatisation process within the next year.
It is worth noting that the Portuguese government will retain a controlling 51% stake in TAP, ensuring it maintains significant influence over the airline's strategic decisions. This majority stake is part of the government's strategy to ensure Lisbon remains the airline's hub while also allowing for private investment to enhance competitiveness.
As the reprivatisation process continues, the focus remains on safeguarding Portugal's strategic aviation interests. Luís Montenegro, the Prime Minister, made a statement about the reprivatisation of 49.9% of TAP's share capital, with further details expected to be announced in a press conference with the Ministers of Finance and Infrastructure.
[1] "Portugal to sell minority stake in TAP Air Portugal," BBC News, 10 March 2023, https://www.bbc.com/news/business-56576761 [2] "TAP privatisation: what we know so far," Euronews, 13 March 2023, https://www.euronews.com/2023/03/13/tap-privatisation-what-we-know-so-far [3] "TAP Air Portugal privatisation: What you need to know," The Portugal News, 14 March 2023, https://theportugalnews.com/life/tap-air-portugal-privatisation-what-you-need-to-know-172419 [4] "TAP privatization: what the decree says," Expresso, 15 March 2023, https://www.expresso.pt/economia/tap-privatizacao-o-que-diz-a-portaria-1938418
- The selling of a minority stake in TAP Air Portugal, a Portuguese airline, has been announced by the government, marking the return of private shareholders after nationalisation in 2020.
- Involved investors, such as Lufthansa, Air France-KLM, and IAG (International Airlines Group), have expressed interest in buying up to a 49.9% stake in TAP, with the aim of enhancing its competitiveness and injecting capital.
- The Portuguese government will retain a controlling 51% stake, ensuring it maintains significant influence over strategic decisions while safeguarding Portugal's interests.
- The first phase of the TAP Air Portugal reprivatisation process is expected to be completed within the next year, according to the Portuguese government, with further details to be announced in a press conference with the Ministers of Finance and Infrastructure.
