Loading

TAP Air Portugal: privatisation attracts Europe's big three airline groups

Premium Analysis

On 28-Sep-2023 the Portuguese government formally announced its plan to sell at least 51% of the share capital of TAP Air Portugal, reserving up to 5% for the airline's employees.

The government also defined the kind of buyer it is seeking, ruling out financial investors looking to buy and then sell the shares on.

"We want large-scale investors from the aeronautical sector, alone or in consortia headed by them, that are aligned with our strategic goals."

The government's strategic aims are to safeguard the growth of TAP and its hub at Lisbon, to ensure investment and jobs in aviation, to ensure growth at national airports with a focus on Porto, and to sell at a price that will "maximise the financial allocation to the country".

Portugal's largest airline by seats, TAP has lost seat share over the past decade while LCCs have gained.

However, its greatest strength is Europe-Latin America – in particular on routes to Brazil. This has attracted interest from potential bidders IAG, Air France-KLM and Lufthansa Group.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 2,006 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.