TAP Air Portugal privatization process officially relaunched
Portugal’s government has revived plans to privatize national airline TAP, aiming to sell a 49.9% stake within the next year, according to news agency Reuters. It could generate further divestment down the line in the future.
The move marks the latest chapter in the long-delayed effort to reshape the carrier’s future following a pandemic-era bailout.
Portugal Prime Minister Luís Montenegro announced the relaunch on July 10, expressing confidence that the partial sale will attract significant interest. “I am convinced there will be many interested parties,” he said in a televised statement. As part of the plan, 5% of the stake are due to go to TAP Air Portugal employees.
Several major European carriers — Lufthansa, Air France-KLM, and British Airways’ parent company IAG — have already held talks with the Portuguese government about a possible acquisition.
Reuters reported that Air France-KLM reaffirmed its interest. The carrier stated it would join the process “once all details are released.” IAG was more guarded. The British-Spanish group noted to “carefully consider all details and conditions” once the terms are public. Lufthansa however declined to comment.
TAP Air Portugal, a “bottomless pit”
The government has stressed that the privatisation is financially motivated. “We’ve already spent a lot of money… we don’t want to keep pouring money into a bottomless pit,” said Montenegro.
TAP Air Portugal reported a record €1.6 billion loss in 2021 during the COVID-19 crisis. It prompted a €3.2 billion state-funded bailout and major restructuring. Since then, the airline has returned to profitability for three consecutive years.
Infrastructure Minister Miguel Pinto Luz said the goal was to secure a strategic partner that could contribute synergies and play an active role in management. “We believe we can complete the privatization within a year,” he told reporters. He also confirmed that non-EU airlines will be able to submit offers under the approved model.
The first step is a pre-qualification phase, which gives potential bidders 60 days to express interest once the government’s decree is ratified by Portugal’s president.
TAP‘s strongest appeal lies in its strategic transatlantic routes, particularly its flight slots to Brazil, Portuguese-speaking African countries, and the United States. The government aims to consolidate and expand these assets under new ownership.
In 2024, TAP carried over 16 million passengers. It operates a fleet of 99 mainline aircraft and an additional 19 under its regional arm, TAP Express. The airline currently employs about 8,000 people.
Privatisation has long been on the agenda for TAP, but political instability has repeatedly derailed progress. The most recent attempt stalled when the previous minority government collapsed in March. Although the centre-right coalition regained power in May’s election, it still lacks a parliamentary majority — leaving the sale vulnerable to political opposition.
(Source : Reuters)
TravelMole Editorial Team
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt