TAP Portugal’s privatisation is moving slowly as potential bidders keep their interest subdued

The Portuguese Government remains reticent on providing detailed progress reports on the privatisation of TAP Portugal, underlying a likely reluctance to sell its cherished national carrier. But the sale is required under a 2011 agreement with the EU and several airline groups from Europe, the Middle East and Latin America will be ready to participate once the sale process finally begins. More than a handful of airline groups will likely participate at least in the initial stages of the bidding process as TAP despite its small size and challenging local market remains a relatively strong carrier with powerful positions in two key emerging markets - Latin American and Africa.

The European Council, European Central Bank and the International Monetary Fund agreed last year to a EUR78 billion bailout package for Portugal providing that it intensified its austerity measures and introduced a comprehensive privatisation programme that includes the energy and insurance sectors, media industries and transport. The latter comprises Aeroportos de Portugal (ANA), Portugal's airports operator, and TAP.