20-Dec-2011 1:01 PM

TAP sees interest from investors ahead of privatisation; expects loss in 2011

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.

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