Published on
Air France‑KLM intends to formally submit a proposal to acquire all or part of a 44.9% stake in Portuguese carrier TAP Air Portugal.
CEO Ben Smith made the announcement during a press conference to present the firm’s quarterly results.
The Portuguese government confirmed nearly two years ago, in September 2023, that it intended to privatise part of TAP.
Speaking during the presentation of Air France‑KLM’s third-quarter results, Smith acknowledged the group’s interest in TAP, as reported by Portuguese news site Dinheiro Vivo.
Air France‑KLM had already signalled interest earlier this year, alongside British Airways owner IAG. Under government rules, parties interested in the stake must submit their proposals by 22 November via email to Parpública, the body responsible for managing state shareholdings.
In July, the government approved the law outlining TAP’s privatisation. Under the terms, the state will retain 50.1% of the airline’s capital and the remaining 49.9% will be sold, with 44.9% allocated to a private investor and 5% reserved for employees.
TAP’s history of privatisation and state control
The Portuguese airline has a long history of alternating between privatisation and nationalisation. In 1991, it was converted from a state-owned company into a public limited company with majority state ownership.
Early privatisation attempts under the Cavaco Silva government failed, and although an agreement with Swissair was reached during António Guterres’ administration, it never came to fruition.
TAP was finally privatised in 2015, coming under the control of David Neeleman, founder of JetBlue Airways and Azul, and Humberto Pedrosa, president of the major transport conglomerate Barraqueiro Group.
The following year, with António Costa’s government in power, the state regained majority ownership. The COVID‑19 pandemic and the need to rescue the airline saw full state control reinstated.
Following the initial announcement, the government completed certain preparatory steps for privatisation, including an internal restructuring. Finally, in July this year, the government officially approved a decree‑law to relaunch the privatisation of TAP, stating the aim was to stop “pouring money into a bottomless pit”.