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TAP Portugal further strengthens position in Brazil with new destinations and Gol partnership

Analysis

TAP Portugual is cementing its leading position in the Europe-Brazil market with two new Brazilian destinations and a new codeshare partnership with Gol. The growth in the Brazilian market is part of an ambitious expansion plan for TAP in 2014 which also includes new destinations in other South American countries and in Europe.

The carrier was profitable for the fifth consecutive year in 2013, giving it the confidence to expand despite continued uncertainty over its future ownership. The Portuguese government has repeatedly delayed privatisation since agreeing to sell TAP as part of a condition to its 2011 bailout agreement with the EU.

Avianca Brazil parent Synergy remains interested in acquiring TAP despite its failed attempt from late 2012, attracted to the carrier's strong position in the Brazil-Europe market. But the government does not seem to be in a hurry and prefers waiting for other bids while supporting expansion at TAP until market conditions for a potential sale improve. Meanwhile TAP's pursuit of a partnership with Avianca Brazil rival Gol could end up irritating the Synergy camp.

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