The Portuguese government’s announcement to sell a majority stake in TAP Air Portugal has garnered the interest of leading airlines Deutsche Lufthansa and Air France-KLM. The government plans to sell at least 51% of the company, with a small portion reserved for its employees. Finance Minister Fernando Medina is seeking investors who will help TAP expand its national hub in Lisbon and enhance capacity at other Portuguese airports.
The goal is to attract investors who are committed to TAP’s long-term success and strategic contributions to the country. Medina emphasizes that they are not looking for purely financial investors who may seek to sell or dismantle the airline. Rather, they are seeking partners who will leverage TAP’s network and contribute to the growth of the aviation industry in Portugal.
This move towards privatization aligns with the ongoing consolidation in Europe’s aviation industry. Lufthansa’s recent acquisition of a 41% stake in ITA Airways and British Airways’ parent company’s agreement to purchase Air Europa indicate a trend towards industry consolidation.
TAP Air Portugal offers an extensive network and connections to South America, including Brazil, as well as other Portuguese-speaking countries in Africa, such as Mozambique. This offers significant opportunities for potential buyers to tap into new markets.
Deutsche Lufthansa expressed interest, stating that they always aim to play an active role in market consolidation. They believe that a partnership with TAP would be mutually beneficial, especially considering TAP’s strong route network to and from South America. Meanwhile, Air France-KLM also expressed strong interest in the privatization of TAP and is eagerly awaiting further details about the process.
This development in the European aviation industry opens up possibilities for TAP Air Portugal and presents potential growth opportunities for the right investor.
