TAP Air Portugal will have at least 51% of its capital offered to private companies, in an auction that should take place in 2024.
The Portuguese government, through the Council of Ministers, approved the initial conditions for the airline’s reprivatization.
According to Finance Minister Fernando Medina, the auction should provide for “the growth of TAP and the national hub” and “ensure investment and employment in high-value activities in the aviation sector”.
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Although the minimum percentage to be offered will be 51%, which guarantees control of the carrier, the government reserved 5% of the shares for the company’s employees.
Other requirements established are the increase in ‘point to point’ flights and the offer at airports with unused capacity such as Porto.
Medina highlighted that the best proposal will not exactly be the one with the highest value, but rather the one that guarantees the conditions established in the future notice.
Bidding in 2024
“We want large-scale investors in the aeronautical sector, either by you or in consortiums led by you, that are aligned with our strategic objectives. We do not intend to attract pure investments of a financial nature that will seek to enter TAP and then sell it later, or else being able to sell parts and ultimately remove TAP’s strategic contribution to the country”, he said.
The goal now is to present the tender specifications between the end of 2023 and the beginning of 2024.
Large European aviation groups are expected to compete, such as Air France-KLM, IAG and Lufthansa.
Currently, TAP operates a flight network concentrated in Europe and long-distance routes to North America, Africa and especially Brazil, due to the historical relations between the two countries.
The fleet consists of 102 aircraft, the vast majority supplied by Airbus.