Portugal’s flag-carrying airline, TAP Air Portugal (TAP), has now become profitable and, as a consequence, is being put up for sale by the government. The move comes after the stricken carrier was granted a €3.2 billion bailout in the form of a taxpayer-funded restructuring programme.
Portugal’s Finance Minister has announced that a minimum 51% stake in the carrier will be up for grabs. While price will be a major consideration, weight will also be given to offers which will see the airline keep Lisbon as its hub and that investment in staff and expansion will also be on the cards.
TAP is one of Europe’s smaller national airlines yet managed to carry approaching 14 million passengers last year. This was a record for TAP and should be surpassed this year. It also made money in 2022, posting a profit of €65.6 million on revenue of €3.5 billion after four years of losses, according to company financial reports.
TAP has over 11,000 staff and 90-plus aircraft flying to more than 80 destinations, mostly in Europe but also in North and South America, especially Brazil, the United States and Africa. There is likely to be strong interest from established British and European carriers, including Lufthansa, Air France-KLM and International Airlines Group, which combines Spain’s Iberia and British Airways among others.
Two previous attempts to privatise TAP failed amid financial difficulties and interminable political squabbling over the carrier. Conflicts with trade unions also have plagued the company. Eight years ago, a newly elected Socialist government undid a privatization three months after it took place under a previous administration, demanding that the buyer sell a majority stake back to the state. In 1998, Swissair bought 34% of TAP but the agreement to buy a bigger stake in the company fell apart three years later when the Swiss flag carrier went bankrupt. (£1.00 = €1.15 at time of publication).
