TAP Portugal’s privatisation enters final stage, with Avianca-TACA parent emerging as only bidder

TAP Portugal is likely to end up in the hands of Synergy Aerospace, the majority owner of Latin American airline group Avianca-TACA, following the surprise announcement on 18-Oct-2012 by the Portuguese government that it had retained only one bidder to proceed to the second stage of TAP's sale process. Final negotiations still have to start and it is as yet unclear how much Synergy Aerospace will pay for the debt-laden Portuguese flag carrier, which is in need of capital to fund expansion and fleet renewal.

The selection of Synergy Aerospace as future owner of TAP would reinforce the Portuguese carrier's leading position in the Europe-Brazil market. It also meets Synergy's long-held goal to expand into the Europe-Brazil and other long-haul markets. Synergy-owned Avianca Brazil is a significant and fast-expanding player in Brazil's domestic market but does not operate any widebody aircraft and has only one international route. Avianca Brazil could replace TAM as TAP's partner for connecting flights in Brazil.