The Lisbon carrier eyes an airline investor after Portugal launches fresh privatisation
TAP Air Portugal CEO Luis Rodrigues told a Routes World audience in Hong Kong that his airline likely will have another European airline as a large investor shortly and that this is indicative of a larger consolidation of airlines he expects will occur in the region.
Portugal has been preparing the ground for the reprivatisation of TAP over the last couple of years and in July launched a process under which 44.9% of shares will be sold to an investor, with a further 5% reserved for employees. The Portuguese government hope to complete the privatisation within the year.
Lufthansa in November joined Air France-KLM in expressing an interest in the sale, while Turkish Airlines and IAG have also been linked with the carrier.Recent European consolidation moves have seen Lufthansa add Italy’s ITA Airways to the group, Air France-KLM take a stake in SAS, and Turkish Airlines bid for Air Europa. Rodrigues said further consolidation is coming. “I think it’s inevitable,” he said. “I think we are in the early stages of consolidation.”
TAP’s strong position on routes between Europe and Brazil makes it an attractive option. The accounts serves 13 cities in Brazil and carries 25.6% of all traffic between the two markets, ahead of the next biggest operators LATAM and Air France-KLM. “If there’s one reason EU airlines are interested, it’s because of this,” Rodrigues said.
Lisbon airport is very congested – Portugal last year picked a site for a new airport in the capital – and TAP will not change much of its capacity there. However, the airline is currently adding flights from Portugal’s second largest city Porto.
“Porto has the potential to be a mini hub for TAP,” Rodrigues said. “Porto-Boston is doing well and we’re exploring more long-haul routes from there.”
Portugal previously sold a majority stake in TAP to a consortium including Azul founder David Neeleman, before taking back majority control in 2020.
