The announcement was made by the CEO of the Franco-Dutch aviation group during a press conference presenting the third-quarter results released today.
“We will present our formal letter of interest at the end of this month,” stated CEO Benjamin Smith.
Parties interested in acquiring the Portuguese carrier have until 4:59 PM on November 22 (Portuguese mainland time) to submit their declaration of interest and compliance with admission criteria to Parpública, which manages the state’s holdings in public companies.
When asked if the group had been in contact with the Portuguese government or other authorities recently, the CEO stated, “That has not happened as of today.”
“We hope that [the expression of interest] will start a formal process, during which we will begin to meet with key stakeholders, including the government,” he clarified.
When asked if the sales process is progressing well, the CEO said it is “too early” to comment, noting that “in the next two months” he will be able to do so.
The CEO reiterated interest in acquiring the Portuguese airline. “We are definitely interested,” he said.
The privatization tender document allows for the sale of up to 44.9% of TAP, with 5% of the capital reserved for workers, according to the Privatization Law. The future buyer will have the right of preference over the unsubscribed portion.
The government anticipates that the process will be concluded within a year, pending approvals from Brussels.
So far, Air France-KLM, IAG (owner of Iberia and British Airways), and Lufthansa have publicly expressed interest, but the privatization process is also open to potential investors outside Europe.
In October, a delegation from Air France-KLM visited the Azores to assess the strategic importance of connections with the region. The Chamber of Commerce and Industry of Ponta Delgada was among the entities visited.
Air France-KLM is owned 28% by the French state and 9.1% by the Dutch state. Other significant shareholders include CMA CGM with 8.8%, China Eastern Airlines with 4.6%, and employees with 3%.
In the first nine months of the year (January to September), the Franco-Dutch group’s net profit was 1.168 billion euros, more than double the 510 million euros achieved in the same period last year.
In the third quarter, Air France-KLM’s revenues increased by 2.6% from the previous year, reaching 9.2 billion euros.
According to the company, the improvement is driven by passenger traffic, maintenance services, and the performance of Transavia, also owned by the multinational.
On October 22, Air France-KLM completed the purchase of a 2.3% stake in the Canadian airline WestJet for 49 million dollars.
The group is also preparing to take “a majority stake” in the Scandinavian airline SAS, where it already holds 19.9%.
In the quarterly report, the group notes that “since the summer of 2024, a commercial cooperation has been implemented between SAS, Air France, and KLM.
[Updated at 12:30 PM]
