Portugal’s plan to privatize, at least partially, TAP has entered a new stage, but with only two of the three players that previously expressed interest in buying a minority stake in the government-owned airline.
Air France/KLM, which has seemed the most eager bidder, and Lufthansa Group met the April 2 deadline for submitting non-binding proposals; International Airlines Group, parent of British Air, Iberia and Aer Lingus dropped out shortly before the deadline. On offer is 44.9% of the airline’s shares, with another 5% possible if they are not claimed by airline employee groups.
The next step is for the government holding company Parpublica to review the two offers, with a deadline in early May. Qualified bidders, likely both of the groups, will then be invited to submit binding proposals by the end of July. The government hopes to finalize the process by the end of the year.
The government’s plan to hold onto majority control, at least in the beginning, is part of a strategy to ensure not only that Lisbon remains a major hub but also that Portugal’s other airports, especially Porto, Faro and the island groups don’t lose out. The uncertainty of a path to full ownership is among the reasons IAG cited for its decision.
The airline is an especially valuable prize for either group because of its dominance in the Europe-to-Brazil market and its strong ties to African routes, especially to areas that were formerly Portuguese colonies.
