The Portuguese Minister of Infrastructure and Housing, Miguel Pinto Luz, addressed the reprivatization of TAP, announced last week, during an interview on RTP3.
During the “Grande Entrevista”, Pinto Luz was questioned about making the airline attractive to investors, given that the State is the majority shareholder. “You know TAP is a matter of passion. I’ve seen many commentators make such remarks,” he responded, citing examples like Iberia or SAS, which had gradual business deals.
“All those deals were phased, starting with minority positions that eventually moved to majority stakes. The answer is clear: it has happened before. That’s how the market functions, allowing us to maximize our options,” he explained.
When asked if any potential investors had shown interest in acquiring 49.9% of the airline, Pinto Luz emphasized the need for transparency in the process but stated that neither he nor the Minister of Finance would be directly involved, though they would oversee it.
However, Pinto Luz noted that the groups mentioned as potential buyers last week confirmed their intent to participate in the privatization process in accordance with the government’s rules.
“There are no informal plans. Informal management was a thing of the past. Now, management is formalized. The government has made the necessary decision. It’s now up to Parpública and an independent oversight commission. The Court of Accounts will scrutinize, as will the Assembly of the Republic,” he emphasized.
Pinto Luz suggested that the “most likely scenario” is that those who participate initially will later take over the rest of the airline, while highlighting the process’s “flexibility.”
He also pointed out that the government would not discuss TAP’s valuation publicly, as it has consistently defended since announcing the reprivatization.
“We’re going to listen to what the world has to say,” Pinto Luz commented regarding potential deals. In addition to airlines like Lufthansa, Air France, and KLM that have shown interest, Pinto Luz expressed openness to hearing from other potential investors. He indicated that previous interest had come from companies that preferred not to disclose publicly, even before the legal framework was approved.
“Investors and industry partners outside the European sphere have knocked on our door. This is part of the reason we opted for 49.9%, to create opportunities,” he explained.
Responding to previous statements about the airline’s need for private investment to survive, Pinto Luz was asked if this weakened the company, potentially allowing the perception of a hasty sale. “Private investors understand the market and the limitations the State has as a shareholder. We’re not teaching investors anything new. They don’t need my words to grasp this situation,” he said.
He also reiterated that the State would not sell the airline “at any price” and emphasized the absence of urgency in the sale, though acknowledging a “mid-term need” to complete the transaction. He stated, “We don’t have urgency, but we need to proceed mid-term to achieve growth, otherwise it poses risks.”
“I won’t rest until I see that letter,” Pinto Luz stated when questioned about a news report claiming a Socialist Party government commitment for TAP to settle a 178 million euro debt with Azul, allegedly signed by then Minister Pedro Nuno Santos.
No such document was found, despite efforts to investigate following the report’s citation of judicial sources. “We continue searching, just as we’ve been seeking the document evaluating David Neeleman’s 55 million euros for years,” he said, adding, “I won’t rest until I see that letter.”
Regarding whether he admitted the possibility of the letter’s non-existence, Pinto Luz said he was eager to read and understand the document. “As citizens, we need to know if that letter existed. Until I see it, I can’t adopt a definitive stance. But assuming its existence, it’s concerning if the state can be managed in this manner,” he pondered.
When asked about contacting Pedro Nuno Santos, the minister responded, “The government has done everything to find the letter, and I won’t speculate further on this matter.”
