summary
- TAP Air Portugal will be partially privatized, with the Portuguese government retaining a strategic stake in the company to protect national interests.
- European airline groups such as Air France-KLM, Lufthansa and International Airlines Group (IAG) have expressed interest in acquiring TAP Portugal due to its route network and fleet.
- The National Civil Aviation Workers Union opposes full privatization, fearing that its partners could break up the airline. The outcome remains uncertain.
Portugal’s TAP Air Portugal is in the final stages of privatization. Three European airlines have already expressed interest in partnering with the best provider of flights from Europe to Brazil.
TAP Air Portugal will only be partially privatized
As previously covered in July 2023, the Portuguese government plans to privatize TAP Air Portugal in October. However, it should be noted that the airline privatization process involves the Portuguese government’s intention to maintain a strategic stake in the airline. According to a report by Aerotime Hub, the equity investment is meant to protect the national interests of Lisbon Airport (LIS), pictured below.
Photo: Wirestock Creators / Shutterstock
ch-aviation.com News reported that Prime Minister Antonio Costa made the announcement the next day.
“As the European Commission is aware, we are successfully implementing our restructuring plan and next week we will approve the diploma establishing the framework for the privatization of TAP, which will benefit the company and Portugal and the Portuguese people. We can confirm that we will protect the
Nevertheless, major European airline groups such as Air France-KLM, Lufthansa and International Airlines Group (IAG) have expressed interest in bringing TAP Portugal into orbit. ch-aviation.com News also reported that there is a committee in Brazil’s Legislative Assembly to consider having Brazil buy the state-owned shares in TAP Portugal Airlines.
Route network and fleet driving force
Of note is TAP Portugal, which has the second-most flights from Europe to Latin America after International Airlines Group’s (IAG) Iberia, and has recently added flights to Brazil. You can now listen to his March 24th podcast in which Dr. Henri-Charles Ozarowski, Head of Strategy, Networks and Partnerships at TAP Airlines Portugal, discusses his TAP Airlines network.
Moreover, according to a September 19 Airline Weekly report, Portugal has established itself as the most southwestern country. “Ideal for transatlantic hub connectivity, providing the shortest and most cost-effective transfers from Europe.”
In addition, TAP Air Portugal has a near-exclusive fleet of upgraded A320 and A330 family Airbus aircraft, which provides a degree of standardization. As shown below, TAP Air Portugal makes good use of its 12 Airbus A321LR aircraft due to its strategic location.
For IAG, Iberia will have a hub in Madrid, Spain, significantly strengthening its current connections with Latin America. For Lufthansa Group, this is an opportunity to expand in a different direction from its current focus on completing the acquisition of Italy’s ITA.
However, regarding Air France-KLM Royal Dutch Airlines, which lost out in the ITA, CEO Ben Smith said the following at an earnings conference on May 5.
“TAP occupies a very strong geographical position in the southernmost tip of Europe towards South America and has a very strong network from Lisbon to Brazil with non-stop online access to 11 cities. , which is very interesting and could ultimately lead to an increase in our bottom line.”
Nevertheless, Portuguese trade unions oppose full privatization
According to a report from bnn.network, the National Union of Civil Aviation Workers (Sintac) is nationally strongly opposed to the full privatization of TAP Air Portugal. Syntak is concerned that whichever partner is chosen could take over the airline and strip it of its parts. Syntac’s concerns increased further when Portugal’s Prime Minister Costa commented that the share would depend on the partner.
What do you think about what the results will be? Please share politely in the comments.
source of information: aero time hub, airline weekly, bnn.network, ch-aviation.com News