Portugal to Sell Up to 49% of TAP Air Portugal in Partial Privatization Plan
Socialist Party and Chega Oppose Full TAP Privatization, Forcing Government to Limit Sale to 49% The non-negotiable condition: Lisbon must remain the airline’s hub and main operational base.
The Portuguese government is moving forward with a partial privatization plan for TAP Air Portugal, limiting the sale to a minority stake of up to 49%. The decision reflects opposition from key political parties in parliament that currently block a full sale of the national airline.
According to reports from Diário de Notícias, the government is adjusting its strategy to ensure the viability of the process amid a fragmented political landscape. The goal is to inject capital and enhance the airline’s competitiveness, drawing the interest of Europe’s major airline groups: IAG (International Airlines Group), Lufthansa, and Air France-KLM, all of which are closely monitoring the process.
The government’s recently released program explicitly identifies “the implementation of the first phase of TAP’s privatization” as a priority. The aim is to “launch and complete the first phase of the process to reprivatize TAP’s share capital.” A key condition is that the airline’s headquarters and hub must remain in Lisbon, safeguarding the country’s strategic connectivity.
The minority sale is a direct consequence of parliamentary dynamics. Parties like Chega, while supportive of bringing in private capital to boost efficiency, oppose a full 100% sale. Meanwhile, the Socialist Party (PS) supports a partial sale only if the state retains an active role in company management—a position previously advocated by former leader Pedro Nuno Santos. This balance of political forces compels the government to adopt a minority model in order to move forward.
Why is Portugal only selling part of TAP?
The 49% limit reflects a lack of political consensus for full privatization. Key opposition parties—Chega and the Socialist Party—condition their support on the Portuguese state maintaining majority control or a strategic role, forcing the government to proceed with a minority stake sale to ensure the deal’s feasibility.
The interest from major European airline groups is longstanding
IAG, owner of Iberia and British Airways, sees TAP as a valuable asset to reinforce its dominance on Europe–South America routes, particularly with Brazil. Lufthansa aims to expand its presence in southern Europe, while Air France-KLM believes the acquisition would strengthen its position in the Atlantic, complementing its existing operations. Each group has reportedly held talks and is reviewing terms for a potential bid, according to industry sources.
TAP, which was renationalized in 2020 amid the pandemic crisis, posted a positive financial result for the third consecutive year in 2024, reporting a net profit of €53.7 million and a record €4.2 billion in operating revenue. These strong figures come as the airline nears completion of its restructuring plan in 2025, making it more attractive to investors.
Through this operation, the Portuguese government seeks not only financial returns but, more importantly, a strategic partner capable of driving TAP Air Portugal’s long-term growth and sustainability—while ensuring Lisbon remains a major transcontinental hub.
AUTOR
Desde 2017, haciendo periodismo aeronáutico. Award-Winning Journalist: Ganador de la edición 2023 de "Periodismo de Altura", otorgado por ALTA. Facts don't care about your feelings.
Comentarios
Para comentar, debés estar registrado
Por favor, iniciá sesión