Leading European airlines have expressed interest in buying the Portuguese Air Transport (TAP) company, including Air France-KLMand Lufthansa, while the International Airlines Group (IAG) — owners of British Airways and Spain's Iberia — joined the race to acquire a stake in TAP last Friday.
"IAG confirms that it has submitted a declaration of interest to Parpública as part of the government's process for the partial privatisation of TAP," an official source from the group said in a statement. They stressed, however, that "several issues need to be clarified before IAG can propose an investment".
Interest has surged after the previously struggling Portuguese carrier published a promising financial statement in September, boasting a €55.2 million profit after expanding its offer of transatlantic flights.
"We believe that TAP will have significant potential within IAG. Our decentralised model provides industry-leading margins and is in line with the Portuguese government's ambition to protect TAP," said the group. The firm added that the investment strategy aims to "strengthen our airlines, benefitting customers, employees, local economies and shareholders".
Deadline for expressions of interest
The deadline for submitting applications was Saturday 22nd November, and Parpública, the company that manages the state's shareholdings, now has until 12 December to submit a report to the Portuguese executive. The report will outline the interested parties and assesses their compliance with the participation requirements.
Afterwards, the groups or companies that have demonstrated compliance with the requirements are invited to submit a non-binding proposal.
The government intends to sell up to 44.9% of the airline's capital, reserving 5% for employees, as stipulated by the country's privatisation law. The remaining percentage will continue to be held by the state.
When the privatisation process was announced, prime minister of Portugal Luís Montenegro said that the stake would be open to "companies and groups that can make this [TAP's] operation competitive and sustainable". He said he was confident that there would be "many interested parties".
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