Portugal’s government is finalizing consultations with companies interested in the TAP airline to establish its objectives before presenting a privatization plan, Prime Minister Luis Montenegro said.
The Portuguese prime minister told broadcaster SIC on Tuesday night (8) that the government “does not want to carry out a privatization without knowing what market participants also have as objectives”, to ensure that the privatization plan is aligned with the market sentiment.
READ MORE: Azul says it holds talks with Portuguese TAP about debt
“There are many interested companies… we are currently concluding consultations with all interested parties who, over time, have expressed interest in acquiring TAP’s capital,” he said.
At least three major airlines — Lufthansa, IAG, parent company of British Airways; and Air France-KLM — stated they were interested in TAP.
A month ago, sources told Reuters that Lufthansa’s chief executive, Carsten Spohr, met with the Portuguese government to formally signal the company’s interest in privatizing TAP.
One of the sources said Lufthansa is eyeing a 19.9% stake in TAP, below the 20% threshold that would require European Commission approval.
READ MORE: Saudi Arabia to invest US$10 billion in new green hydrogen company
“We are studying the best model to be successful and value the company as much as possible,” said Montenegro, highlighting that Portuguese taxpayers paid 3.2 billion euros to rescue TAP during the pandemic.
“I have always argued that, ideally, we could achieve total privatization, as long as we secure the routes that are strategic for us and the Lisbon hub… (but) I am not saying that the model should be to go from 0% (private participation) to 100 %.”
