By Mauro Orru
The Portuguese government said it was starting the process to sell a minority stake in TAP Air Portugal, a move that would significantly reduce state involvement in the national carrier.
Prime Minister Luis Montenegro said Thursday that the government wanted to sell a 49.9% stake in the state-owned airline, hoping to cede 44.9% to private investors and the remaining 5% to company employees. The law on the divestment will require that buyers keep the company's main hub in Lisbon.
The decision to privatize the airline paves the way for more consolidation in Europe's aviation industry, after Germany's Deutsche Lufthansa bought a 41% stake in ITA Airways, the Italian carrier formerly known as Alitalia.
The announcement comes nearly two years after a previous government in Portugal outlined plans to sell a stake in TAP. In 2023, British Airways' parent International Consolidated Airlines Group, Air France-KLM and Lufthansa expressed interest in TAP Air Portugal.
An IAG spokesperson said Thursday that the group welcomed the announcement launching the privatization process. "As we have previously stated, IAG looks forward to reviewing the terms of the potential sale of TAP and will carefully consider all details and conditions of the process as soon as they are made available."
A spokesperson for Air France-KLM said the group would be keen to participate in the process once details are known more precisely. Lufthansa declined to comment.
Successful bidders will gain access to TAP's sprawling network and connections to South America, including Brazil, and other Portuguese-speaking countries in Africa such as Mozambique as well as Sao Tome and Principe.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
07-10-25 1306ET
