Air France-KLM, Lufthansa compete for TAP Air Portugal stake

Portugal has asked Air France-KLM and Lufthansa to submit binding offers to acquire a controlling stake in TAP Air Portugal, as the government moves ahead with plans to privatise the airline it rescued during the Covid-19 pandemic, News.Az reports, citing AFP.

The Portuguese government announced last September that it intended to sell a major international airline a large share of the 49.9% stake it plans to privatise.

Air France-KLM and Lufthansa both submitted non-binding proposals earlier this month. The government is now requesting binding bids within a three-month period.

“Two of the three big European airline groups... are in the running, which demonstrates the attractiveness of the company as well as the country,” said Finance Minister Joaquim Miranda Sarmento.

International Airlines Group (IAG), the parent company of British Airways and Iberia, had previously shown interest in TAP but did not submit a bid.

Infrastructure Minister Miguel Pinto Luz, who oversees the privatisation process, said a final decision could be reached in August or early September.

TAP Air Portugal was renationalised in 2020 to stabilise losses caused by the Covid-19 pandemic and remains one of the few state-owned airlines in Europe.

Foreign carriers are particularly interested in TAP due to its strategic routes to Brazil and Portuguese-speaking African countries.

“Thanks to its ideal geographical position, Lisbon would become the group’s unique southern European hub,” Air France-KLM said earlier this month, adding that it would provide “extensive connectivity” to the Americas and Africa.

The airline employs around 7,700 staff and operates a fleet of about 100 Airbus aircraft.

News.Az 

By Nijat Babayev