TAP president Fernando Pinto stated he has been informally contacted by stakeholders regarding TAP's planned privatisation. "There is a group of buyers, but they are just casual conversation, but the process has not yet begun, and many are listed on the stock exchange, so can not speak much in the process," he said in an interview with Jornal de Negocios. Portugal plans to sell TAP in 2012 as part of a plan to raise funds. He noted the TAP privatisation process will commence only after the process of sale of Energias de Portugal (EDP) and Redes Energéticas Nacionais (REN). Mr Pinto also stated the carrier will likely post a loss in 2011 amid a 40% increase in fuel costs, which significantly outpaced the 7% revenue increase. TAP reported a net profit of EUR62 million in 2010.
TAP sees interest from investors ahead of privatisation; expects loss in 2011
You may also be interested in the following articles...
Finnair and TAP Portugal: their location based long haul niche strategies compared
Both Finnair and TAP are based in peripheral corners of Europe: Finnair in the extreme northeast and TAP in the southwest. Both are based in countries with relatively small populations, but they have developed networks that capitalise on their geographic location to carry connecting traffic from across Europe and elsewhere to long haul destinations in other continents.
TAP's main long haul market is Upper South America (primarily Brazil), but it also has a secondary long haul niche in Africa. Finnair's main long haul market is Northeast Asia, with an additional presence in South and Southeast Asia. Both also operate to the US. On short haul, LCC competition has been a bigger threat to TAP than to Finnair, but cost savings are important to both.
TAP and Finnair have similar traffic volumes, unit costs and average trip lengths. Moreover, both have struggled to generate sustainable profitability. This report compares and contrasts Europe's two leading independent exponents of the location based long haul niche strategy. Both are set to accelerate their long haul growth.
TAP Portugal transforms under new owners to tap potential; at forefront of narrowbody long haul
A period of restructuring following investment by new shareholders in TAP Portugal in Nov-2015 has led to a resurgent airline. It returned to profit in 2016 after two years of losses and enjoyed a surge in passenger numbers in 4Q2016.
The investment by the Atlantic Gateway Consortium, which HNA Group will formally join in 1H2017, provided funds for fleet expansion. TAP's orders include A321neoLR aircraft, giving it the potential to open new long haul routes not possible with widebodies.
TAP's VP finance, Teresa Lopes, told the CAPA Fleet & Finance Summit on 2-Mar-2017 that the A321neoLR would be deployed on the Atlantic, putting the airline at the forefront of narrowbody long haul operations. TAP's new shareholders have also enabled new partnerships with Brazil's Azul, JetBlue of the US and China's Hainan Airlines. The TAP-Azul relationship has already progressed beyond codeshare and the Hainan relationship offers much potential.
In the past year TAP has also reorganised its regional operation, launched a new fare structure and embarked on a seat densification programme to lower unit cost and drive revenue. As Ms Lopes said, "We are certainly going through a transformation, we don’t want to be envisioned as a legacy carrier anymore".