TAP selloff – Government has drawn up terms and conditions for potential buyers

It’s full steam ahead for the privatisation of Portugal’s State-owned airline TAP with the rules of the game set for potential buyers.

This is according to the Secretary of State for Infrastructures, Hugo Espírito Santo, who said this week that everything was ready to start the privatisation process.

The minister spoke to the business daily Jornal de Negócios behind the scenes at the conference ‘AED Days 2025’ which discussed Portugal’s aerospace and defence cluster and confirmed that the government (even in its caretaking capacity) had continued to work on the TAP privatisation plan with the process ready to advance.

“We already have a model of the terms and conditions defined, as well as the documents regarding the tender rules and we’re just awaiting the formation of the new government,” he said.

Several major European airlines have expressed interest in acquiring TAP Air Portugal, including Air France-KLM, Lufthansa, and International Airlines Group (IAG). These companies see TAP as a valuable asset, particularly due to its hub in Lisbon and its presence in key markets like Brazil and Africa.

IAG has shown considerable interest in buying some or all of the airline and even suggested earlier this year that they would be prepared to take a minority interest with a phased move to majority shareholding over time.

In the European market, TAP is a relatively small airline, ranking 17th and operating 13.8 million seats in 2024 placing the carrier just behind Austrian Airlines but, interestingly, slightly ahead of Ireland’s Aer Lingus.

Notably, TAP is the largest legacy airline in Europe that remains independent of a larger airline group but accounts for only about 1.4% of total capacity from Western Europe. That said, its network includes some unique niches such as its routes to the Portuguese-speaking world in South America and Africa that enhance its appeal beyond its size to potential buyers according to the blog Aviation Market Analysis.