Not that Italy has picked a bidder affiliated with AirFrance/KLM and Delta to buy a majority stake in state-owned ITA Airways, attention is turning to TAP, which Portugal nationalized during the pandemic.
Not surprisingly, some of the interested bidders are the same: Lufthansa, which lost the ITA bid, and the AirFrance group, which was allied with the successful bidder, American capital firm Certares. Portugal has signaled it wants to sell by early 2023, and it wants to sell a majority stake, although it has not said how much it wants to retain.
The sticking point at ITA, which most observers expected would go to Lufthansa, was Lufthansa's desire to have complete commercial control of the airline, with little political interference. That may be an issue at TAP as well. Lufthansa and TAP are both Star Alliance members, which might weigh in favor of a Lufthansa bid.
IAG, the parent of British Air, Iberia and Vueling has long been thought to be interested, but would likely run into competition regulation issues as Iberia and TAP are the two dominant airlines in the Iberian market and in traffic between Europe and South America. As well, IAG's on-again off-again negotiations to acquire another Spanish carrier, Air Europa, could nix the idea.
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