Lisbon (AFP) – Portugal on Thursday asked Air France-KLM and Germany’s Lufthansa to make binding offers to buy a controlling stake in TAP Air Portugal, as the government seeks to privatise the airline it rescued during the Covid-19 pandemic. The government announced last September that it was seeking a major international airline to buy most of the 49.9 percent stake that it plans to sell. Air France-KLM and Lufthansa both submitted non-binding offers this month, and Portugal’s government now wants them to lodge binding bids within three months.
IAG, the parent company of British Airways and Iberia, had earlier expressed an interest in taking a stake but did not make a bid. TAP is a tempting target primarily because of its routes serving Brazil and Portuguese-speaking Africa. “Two of the three big European airline groups…are in the running, which demonstrates the attractiveness of the company as well as the country,” said Finance Minister Joaquim Miranda Sarmento.
Infrastructure Minister Miguel Pinto Luz, who is in charge of the privatisation of TAP, said a final decision could be made in August or early September. Air France-KLM welcomed the decision, noting its “strong and continued interest in TAP” to make Lisbon a hub for its southern European network. “This would benefit TAP, its employees, and Portugal as a whole, notably through increased connectivity,” it said.
Lufthansa said it looked forward to “engaging further” on an offer that would “expand strategic routes, and support TAP’s long-term, sustainable growth, creating value for the company, Portugal, and all stakeholders.” TAP, which was renationalised in 2020 to stem losses from the Covid-19 pandemic, is among the few remaining state-owned carriers in Europe. The airline has around 7,700 employees and a fleet of around 100 Airbus planes.
© 2024 AFP
