“In 2012, if I am not mistaken, we had a first attempt at privatization with a single potential buyer who wasn’t even recognized by the government, and therefore, that process died. In the second attempt, an operator appeared who was not a first-tier one, leading to a privatization operation between 2016 and 2020,” recalled Luís Rodrigues, during a meeting with journalists in Lisbon.
“We have significantly evolved to a scenario where the three largest European groups showed interest. I think that says it all,” he added.
Luís Rodrigues further highlighted that the airline “is in good shape,” although it has “its problems to solve, like all aviation companies in the world.”
On December 3, in Macau, the Secretary of State for Infrastructure also praised the fact that, for the first time this century, a privatization of TAP attracted the interest of the three leading European airline groups.
“Never in the three privatizations of TAP this century have the three leading European airlines shown interest – and active interest – in TAP. And, therefore, that makes me comfortable that the next eight months of pain for Luís [Rodrigues, CEO of TAP] will result in something good for all of us,” said Hugo Espírito Santo in Macau during the 50th National Congress of the Portuguese Association of Travel and Tourism Agencies (APAVT), which featured the company’s leader in the audience.
Air France-KLM, IAG, and Lufthansa have confirmed their interest in entering the race for TAP.
Asked about the possibility of concluding the privatization in 2026, the manager stated: “I want it to be done as best as possible, as quickly as possible, but the perfect is the enemy of the good.”
The restructuring plan agreed with Brussels originally envisaged the sale of TAP’s 51% stake in Cateringpor and 49.9% in the former Groundforce by the end of this year, as part of the measures approved in the context of the Covid-19 pandemic.
Regarding the fulfillment of this deadline, Luís Rodrigues commented: “I don’t know if [the sale] will not happen or if the intention [will happen by the end of the month] and complete it as soon as possible,” possibly only in 2026. “It wasn’t possible to do everything at the same time,” he pointed out.
Regarding the scope of the assets to be included in the privatization, such as Cateringpor, Luís Rodrigues clarified that the decision rests with the Government.
The terms of reference provide for the sale of up to 44.9% of TAP, with 5% of the capital reserved for employees, and the future buyer will have the right of preference over any unsubscribed share.
If the catering and handling businesses are excluded, the list to be included in the privatization should comprise TAP SA, Portugália, and the group’s healthcare unit (UCS).
As for the possibility of TAP providing handling services currently ensured by Menzies, the CEO stated that “it is not being considered at this time.”
In the coming months, the European Commission will assess the end of TAP’s restructuring plan and the fulfillment of the agreed goals, in coordination with the Portuguese state. If the goals are considered met, TAP will be exempt from some restrictions, including the limit of 99 aircraft and the prohibition on acquiring other assets.
