The Portuguese government under Prime Minister Luís Montenegro is resolutely pursuing the process of partially privatizing the state-owned airline TAP Air Portugal. Infrastructure Minister Miguel Pinto Luz emphasized in a recent statement that the process could be completed even if only one serious bidder remained in the competition.
According to the ministry, the decisive factor is not the quantity of bids, but rather the long-term safeguarding of the state's strategic interests. This stance underscores the political will to return the airline to greater private ownership after its costly state bailout during the pandemic, in order to relieve the burden on public finances and ensure its competitiveness.
After the International Airlines Group (IAG), which includes British Airways and Iberia, officially withdrew its interest, the process is now focused on the remaining European aviation giants, Air France-KLM and the Lufthansa Group. Both companies are currently examining the economic conditions for a potential acquisition. The plan is to sell a stake of up to 44,9 percent. A fixed quota of 5 percent of the shares is to be reserved for the airline's employees to increase acceptance of the change in ownership among the workforce. However, the government intends to retain significant control initially.
A key pillar of the negotiations is securing the Lisbon hub and preserving the TAP brand. The Portuguese government is making the sale conditional on maintaining the airline's strategic focus on connections to Brazil and Portuguese-speaking Africa. These routes are considered the most profitable segments in TAP's network and are of immense importance to Portugal's economic relations. According to industry experts, Lufthansa could be particularly interested in TAP's strong market position in South Atlantic traffic to strengthen its own presence in Latin America, while Air France-KLM sees synergies in its existing cooperation with Brazilian partners.
The privatization timeline stipulates that a final decision on the future partner should be made by the end of 2026. In addition to financial aspects, political stability also plays a role, as the opposition in the Portuguese parliament views the sale critically and demands extensive guarantees for job security. Despite this opposition, the government remains determined to implement the project promptly. A successful partial sale would not only generate fresh capital for fleet modernization but also solidify TAP's integration into one of the major global airline alliances.