Portugal Relaunches TAP Airline Privatization with Major European Interest

Portugal has relaunched the privatization process of its national airline, TAP Air Portugal, with plans to sell a 49.9% stake, including a 5% share reserved for employees. Prime Minister Luis Montenegro emphasized the move as essential for TAP's sustainability and profitability, aiming to attract strategic partners to strengthen the airline and support Portugal's economic growth. Major European airlines such as Lufthansa, Air France-KLM, and British Airways owner IAG have shown significant interest, although some remain cautious pending more details. TAP's valuable slots to Brazil, Portuguese-speaking African nations, and the U.S. enhance its appeal as a strategic asset. Despite financial losses during the pandemic, TAP has returned to profitability, transporting over 16 million passengers in 2024, but the privatization process may face political challenges in parliament. The government plans to complete the sale within a year, considering both European and non-European bidders.